Cryptocurrencies have been stuck within a tight range for almost four weeks now. Every once in a while, we see some attempt to break out of the range and at press time it looks like THETA might be making that attempt.
Theta network’s native crypto THETA popped up as one of the top gainers on 8 June. It rallied by 13% as the market continued to trade within a tight range. While this would be a normal price range on a regular day, it is considered a strong performance during the ongoing low-volume range. More so, when you consider that most of the top cryptocurrencies barely achieved over 5% upside in the same trading session.
Is there more to THETA’s rally?
Although THETA has achieved notable upside in the last 24 hours, it is still trading within its 3-week range. It still has some ground to cover before reaching the upper limit of its range near the $1.50 price level.
Source: TradingView
Although THETA’s current upside is backed by healthy accumulation, it appears that the volume levels are normal. This means we should not really expect a massive upsurge unless in the event of a major catalyst.
THETA’s RSI is currently headed towards the 50% level where it is will likely experience some selling pressure. Such an outcome will likely coincide with a potential resistance retest of its current upper range.
THETA’s on-chain metrics reveal a similar outlook. Its market cap and volume metrics have been going through normal oscillations, in this case they have both gained in the last 24 hours. No major upticks were observed, hence we can conclude that THETA is going through a normal price swing.
Source: Santiment
Expecting the unexpected
The current expectation based on price action and on-chain metrics is that a bearish reversal awaits THETA’s latest upside. However, the crypto market can be very unpredictable and its latest price action is the perfect example. The supply held by whales metric dropped as the price and market cap increased. This suggests that the uptick was supported by retail volume.
Source; Santiment
A whale accumulation wave would likely trigger more upside for THETA but this remains in the realm of hypotheticals. Nevertheless, a close eye on THETA’s supply may help provide clarity on where it is headed.
