- THETA loses crucial support at the ascending parallel channel's middle boundary.
- Short-term technical analysis based on the MACD suggests that a breakdown is around the corner.
- A spike in social volume shows that THETA's persistent uptrend may be unsustainable.
- Higher support, preferably above $7, would keep bulls focused on new record highs above $10.
THETA has maintained the uptrend since the beginning of March. The bulls' insistent push has spurred speculation within the community that the altcoin is ready to make the ultimate liftoff to new record highs above $10. However, technical levels are flipping bearish fast; thus, sabotaging the uptrend and bringing losses into the picture.
THETA bulls lose traction as overhead pressure mounts
THETA is trading at $7.25 toward the end of the Asian session on Monday. The bullish formation over the weekend failed to break above the recent all-time high of around $8. The correction that came into the picture saw THETA lose essential support provided by the ascending triangle's middle boundary.
At the time of writing, THETA is trading at $7.15 amid an increasing overhead pressure. If support at $7 fails to hold, the bearish leg could extend toward the channel's lower edge.
The Moving Average Convergence Divergence (MACD) has reinforced the bearish formation with its negative gradient. Besides, as the MACD line (blue) crosses under the midline, massive declines will come into play.
THETA/USD 4-hour chart
According to Santiment, THETA is receiving a lot of attention from the social media communities. The spike in the chatter around the token is perhaps reminiscent of the uptrend witnessed from MAR 1. However, a high social volume is not a bullish signal and often is followed by a significant correction. As the price rises, social sentiment grows positively but starts to flip as the mentions reduce, culminating in losses.
%20[08.10.11,%2015%20Mar,%202021]-637513818207985673.png)
THETA social volume
Looking at the other side of the fence
Support at $7 remains critical to the uptrend, first above the all-time high, secondly the liftoff to $10. However, to sustain the uptrend, THETA must reclaim the ground above the ascending channel's middle boundary level. Trading above this zone will encourage bulls to push toward $10.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.