THETA — Volume Needed To Tackle Upcoming Resistances (And Propel Us To A 30% Trade Potential)!

Like many other tokens, THETA found its local bottom between $1.20 and $1.25 and bounced nicely from it.

However, despite the recent positive performance, I don't consider THETA an asset to trade yet. Here are three things that have to happen before an entry makes sense.

Continuing Downtrend

THETA is still trapped in its downtrend that started in March 2024. All attempts to break out have been unsuccessful so far. Just yesterday, THETA made a fresh attempt that was rejected immediately. As long as THETA trades below this trendline, I don't consider a long entry.

EMA200 As Additional Resistance

At the same time, THETA trades below the EMA200. If you follow my content, you already know I consider this indicator crucial. It can be overruled by bullish momentum, but I don't see this in terms of THETA yet.

Resistance Zone At $1.80 - $1.85

Once THETA breaks out of the downtrend and jumps above the EMA200, it faces a significant resistance zone immediately before it gets some room to breathe.

Technical Indicators

THETA shows a mixed bag of technical indicators. However, since many momentum indicators show oversold signals due to the recent price increase, one can doubt that the abovementioned resistance will be immediately smashed.

Trade Signals

On higher timeframes, THETA has no valid trade signals (neither bullish nor bearish). On lower timeframes (4H, 1H), THETA printed some bearish signals. However, I wouldn't overestimate these signals.

💡What-If!

Given that THETA manages to 1) break out of the downtrend, 2) jumps above the EMA200, and 3) smashes the resistance (optimally second by some bullish trade signals) I will consider a long trade.

Since the next more significant resistance sits at $2.50, the trade's first profit target would have a potential of 30%.

The Challenge

As promising and intriguing as the above What-If scenario sounds, I see one major hurdle: volume. THETA's trade volume has been constantly decreasing since the spike in March. Even during times when the market saw considerable pumps, THETA's volume remained at a low level. In order to tackle the above resistances, THETA requires a volume push more than anything else.