Chart of the Day: Update on THETA/USDT (Short Term)
Since the last update on the Theta Token, the crypto market has come down considerably. Theta though has shown a nice recovery in the last few days, and with the airdrop of the T-Drop Token for Theta Stackers due on 1 February, we could see some further upside in the next couple of days.
Theta dropped to a low of $2.27 on 24 January, and has currently recovered to $3.00. A break and retest of the $3.00 resistance looks like an opportunity for a trade. This obviously depends on Bitcoin holding its price.
Looking at the 1 Hour Chart, we can see that Theta has formed an inverted head and shoulders pattern. If this pattern plays out, the target will be around the $3.60 area. This is measured by taking the height of the inverted head between $2.27 and $2.94, which equals $0.67. If you add that amount to $2.94, then that gets the price to around $3.60.
A second way to measure the target, would be to take the Fibonacci tool, and measure the 0.618 retracement level between the high of $4.66 on 20 January 2022, and the low of $2.27 on 24 January 2022. The 0.618 line is at exactly $3.74.
In summary, with a break and retest of the $3.00 support line, a short-term target for Theta will be between $3.60 and $3.74. With the airdrop five days away, Theta could have some upside in the next couple of days.