🔎 #THETA Analysis

The coin has been consolidating at its lows throughout the year. The price has tested the $0.75 level twice. Volumes appeared and an upward five-wave cycle began to form according to the Elliott📈 theory. Having overcome the level of $0.75, the price reached local highs at $1.46, which completed the first wave. The ABC corrective zigziag and the I wave of the cycle formed a W-shaped reversal pattern. This pattern began to work out after the second corrective wave. Its potential contributed to the development of the third upward wave.
In turn, wave II maintained the upward structure of the cycle, as it ended above $0.75, reaching a low of $0.88. The imbalanced volume stimulated the development of wave III. As part of the wave, the price overcame the consolidation resistance of $1.62. As of today, the high of wave III is just below the $2.5 mark. This level was the local low of the previous trading before falling to $0.75. Judging by the price reaction to the level and in accordance with the Fibonacci III trend extension, the wave is coming to an end.
On the local timeframe, a bearish price divergence has formed with the MACD indicator. The price has marked two rising highs, while the indicator has two descending highs. The immediate target of the divergence is the local support level of $1.92. For the correct formation of wave IV and maintaining the upward structure of the cycle, it is necessary that the price does not go significantly below the $1.62 level. Otherwise, the structure will break and the loop will turn into a rebound of the ABC📉 format.
The ADX indicator indicates a local weakening of the trend. The positive moving average has gone under the trend trend, which may be a signal for a local correction. At the presumptive top of wave III, a pinbar candlestick pattern has formed. As a rule, after such a formation, the price begins a downward movement in the direction of the long shadow. A reduction in volumes at the maximum values of the wave also hints at the transition to the IV corrective wave.
Both timeframes signal the imminent end of wave III of the upward cycle. The probability of another local impulse remains. Market volatility allows. But according to most signs, wave IV is beginning to form. It is important that the price within this wave fulfills the conditions and maintains the upward structure of the cycle. Potentially, in this cycle, the price may go beyond the $2.8 level and complete the global correction of the coin.