THETA coin price retraces to $2.5 with the recent reversal from the supply rich resistance trendline. Will bulls surpass the resistance trendline?

Key technical points:
<ul>
 	<li style="font-weight: 400">THETA coin price forms a morning star pattern</li>
 	<li style="font-weight: 400">The Stochastic RSI shows the possibility of an early bullish crossover.</li>
 	<li style="font-weight: 400">The 24-hour trading volume in the Theta Network is $213 Million, indicating a 50% rise. </li>
</ul>
<h2>Past Performance of THETA</h2>
THETA prices continue to create lower high formation under the bearish influence of the 50-day EMA and the long-coming resistance trendline. The altcoin retraces to $2.5 and forms a morning star pattern that hints of a bullish reversal to the 50-day EMA. Moreover, the sudden overnight recovery of the crypto market increases the chances of a turnaround.

<img src="https://s3.tradingview.com/snapshots/s/sbiCh1lp.png" alt="TradingView Chart" />

Source-<a href="https://www.tradingview.com/x/sbiCh1lp/">Tradingview</a>
<h2>THETA Technical Analysis </h2>
THETA prices show a growth of 5.38%, with the demand met near the $2.5 mark, reflecting a bullish revolt after the 20% fall last week. Hence, buyers can expect the reversal to reach the $3 mark at the current price.

The crucial EMAs maintain a bearish alignment as the altcoin continues under the highly influential resistance trendline. Moreover, the dynamic resistance provided by the 50-day EMA keeps the bullish growth in check.

RSI Indicator: The RSI slope shows a reversal from the 14-day average after tanking below the 50% line. Moreover, the RSI slope projects a bullish divergence in the last two dips at the $2.5 mark. Hence, the chances of reversal giving a trendline breakout increase.

Stochastic RSI Indicator: The K and D lines show an early reversal in the neutral zone that may shortly result in a bullish crossover. Moreover, the divergence in the lines is crystal clear, increasing the chances of a trendline breakout.

In a nutshell, THETA technical analysis shows a high likelihood of a bullish breakout of the resistance trendline and the 50-day EMA.
<h2>Upcoming Trend</h2>
THETA coin price action may shortly show a bullish rally following the morning star pattern and break above the 50-day EMA. The breakout has the potential to reach the 200-day EMA close to $5. However, closing below $2.5 will nullify the bullish theory and tank the prices to $2.

Support Levels: $2.5 and $2

Resistance Levels: $3.5 and $5

THETA Technical Analysis: Divergence at $2.5 Hints Trendline Breakout

THETA coin price retraces to $2.5 with the recent reversal from the supply rich resistance trendline. Will bulls surpass the resistance trendline?

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

THETA Technical Analysis: Divergence at $2.5 Hints Trendline Breakout

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