- THETA is in the middle of a correction after hitting a barrier at the all-time high of $8.
- The TD Sequential indicator has flashed two sell signals on the 4-hour and 12-hour charts.
- Support at $7 could see THETA resume the uptrend and launch an assault on the record high.
THETA has been rejected from the all-time high and is dancing at $7 at the time of writing. The correction comes after a persistent rise in price from the beginning of the year. As the upward momentum lost traction, bears rushed in with a mission to assault higher support levels. If the immediate support at $7 fails to hold, massive selling orders may trigger, increasing the overhead pressure.
THETA hangs at the edge of a high cliff
THETA bulls seem to have minimal control over the price, especially with the emerging selling signals. Overhead pressure is mounting under the ascending parallel channel's upper boundary. On the downside, trading under $7 would allow the bearish leg's extension to the channel's middle boundary.
The Moving Average Convergence Divergence (MACD) reinforces the bearish outlook. The trend momentum tracker has hit a snag in its uptrend and appears to be correcting toward the mean line. If the MACD line (blue) crosses under the signal line, more losses will come into play.
THETA/USD 4-hour chart
The TD Sequential Indicator has recently flashed two sell signals on the 4-hour and 12-hour charts. This calls to sell manifested in green nine candlesticks. They signal that the uptrend is reaching exhaustion while bears are preparing to take over control. If validated, THETA may fall may appreciably extend the bearish leg, perhaps hit the 50 Simple Moving Average support, reinforced by the ascending channel's lower boundary.
THETA 4/12 hour charts
Looking at the other side of the fence
It is worth mentioning that holding the support at $7 would ensure stability remains in the market. The ascending channel's middle boundary would also play a vital role in ensuring that losses to don extend to $5. On the upside, a break above $8 and the channel's upper boundary would lead to the resumption of the uptrend.
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.