Theta Fuel Price Slumps to $0.4, While the Freefall Seems Far from Over
- Theta Fuel explores levels downstream as losses to $0.13 loom.
- The MACD and the RSI indicators' technical outlook remains drab.
- Support at $0.35 must hold if bulls desire to prevent TFUEL from extending the bearish leg.
Theta Fuel's majestic rally hit the reverse gear on approaching $0.7. Analysts had predicted that the token would hit levels above $1 before June 30. However, the selloff across the market sabotaged the uptrend.
Meanwhile, TFUEL has slipped massively downward, erasing a sizable amount of the gains accrued over the last couple of weeks. Support is anticipated at $0.35, but the bearish leg has the potential to extend to $0.13.
How far can Theta Fuel's downtrend go?
The 12-hour chart brings to light a highly faded bullish technical outlook. However, bears seem to be thriving, with massive losses hovering. For instance, the Moving Average Convergence Divergence (MACD) indicator reveals that TFUEL's trend is more inclined to the downside.
Note that the MACD is a momentum oscillator used in trading trends. However, very few traders use it to identify overbought and oversold conditions. The indicator overlays on a chart with a couple of trend lines oscillating with no boundaries.
The crossover of these two lines is a trading signal resembling that of the moving average system. It is worth noting that crossing above the midline (zero line) is a bullish signal while crossing below the same line adds credence to the downtrend.
Furthermore, when the MACD line (blue) crosses above the signal line, it is bullish. On the other hand, the trend tends to flip bearish when the MACD line crosses under the signal line, as highlighted on Theta Fuel's chart.
As the MACD closes in on the zero line, we expect the bearish momentum to gain traction. A final deep in the negative region would trigger more sell orders.
TFUEL/USD 12-hour chart
Simultaneously, the Relative Strength Index (RSI) reinforces the bearish narrative as it dives sharply toward the oversold region. This is a trend indicator tool that also measures the strength of either the bulls or the bears. A movement toward the oversold territory shows that bears are more aggressive, and the downtrend may carry on.
At the moment, Theta Fuel battles for support at $0.4. Closing the day under this level will put pressure on the next anchor zone at $0.35. Realize that in May, TFUEL tested support at $0.13 before starting to regain ground. Identical price action could take place ahead of a significant recovery.
On the upside, the 100 SMA also provides immediate support. If this area remains intact, buyers will focus on the uptrend while channeling all the efforts into pulling Theta Fuel above $0.5. This move may validate the subsequent recovery phase and set the pace for gains above $1.