- Theta Network price gains traction after holding key support at $3.6.
- THETA Must overcome the resistance at the 100 50 SMA to explore levels heading to $10.
- Multiple buy signals hint at Theta Network gaining traction in the coming sessions.
Theta Network recently flipped bullish and closed the day in the green. Support at $3.6 played an essential role in ensuring declines did not extend further. Besides, a recovery above the resistance at $38 paved the way for gains eyeing $10.
In the meantime, THETA trades at $4.4 while bulls battle the immediate resistance at the 50 Simple Moving Average on the four-hour chart. A break above this level will ensure that the uptrend gains traction above $5.
Theta Network Price Breakout Becomes Apparent
The Moving Average Convergence Divergence or MACD was created to incorporate the 26-day and the 12-day exponential moving averages. However, other inputs are allowed to suit the trader or investor.
It is imperative to note that the MACD has two key components; an indicator line and a trigger (it is arrived at by the indicator's moving average, overlaid on the indicator).
This technical tool is used as a buy signal when the trigger crosses above the indicator line. Usually, this crossover occurs before the crossover of the moving averages on the asset's price chart.
For instance, a buy signal for Theta Network occurred after the 12-day EMA crossed above the 26-EMA. Besides, the uptrend's odds continue to increase as the MACD moves above the mean line into the positive region.
THETA/USD four-hour chart
The TD Sequential indicator presented a buy signal on THETA's 12-hour chart, adding credence to the optimistic outlook. The bearish formation developed as a red nine candlestick anticipating one to four 12-hour candlesticks correction.
The call to buy Theta suggests that buyers are gaining traction while bears give way to their efforts. Therefore, a breakout toward $ will begin to take shape, especially if the immediate resistance at $5 is shattered.
THETA/USD daily chart
Looking At The Others Side Of The Fence
A death cross pattern will likely appear in the coming sessions as the 50 SMA crossed below the 200 SMA. This is a highly bearish formation that may see Theta trimming most of the accrued gains. A lower consolidation is expected, perhaps above $3.6, before Theta Network takes up another for gains eyeing $10.