- Theta price faces stiff resistance from the 161.8% Fibonacci extension level at $11.34.
- Momentum Reversal Indicator (MRI) has flashed a “preemptive top” signal, suggesting that the rally might be coming to an end.
- A decisive daily candlestick close above $11.34 could invoke a bullish scenario for THETA.
Theta price rally might come to an end soon as it approaches a significant resistance zone combined with a sell signal.
Theta price approaches overhead barrier
Theta price has increased 300% in less than a month. However, this bull run could be coming to an end as THETA is nearing another crucial point in its upswing, the 161.8% Fibonacci extension level at $11.34.
The MRI indicator flashed a “preemptive top” in the form of a yellow down arrow on the 1-day and the 1-week chart. This setup forecast a one-to-four candlestick correction.
Therefore, a combination of the 161.8% Fibonacci extension and the MRI indicator’s “top” signal could play a critical role in putting an end to THETA’s bull rally.
If the correction were to playout, Theta price could retrace 15% to $9.2. An overwhelming bearish pressure could extend this pullback by another 9% to $8.30.
THETA/USDT 1-day, 1-week chart
On the flip side, investors need to understand that sell signals tend to go bust in a strong bull trends. Moreover, the MRI’s sell signal is “preemptive” and has a chance of going bust.
If this were to happen, then Theta price could quickly surge past the $11.34 barrier coinciding with the 161.8% Fibonacci extension level. A decisive close above this point could see Theta price ascend 41% to 200% Fibonacci extension level at $16.01.
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