- THETA price rebounds from crucial support in the wake of losses from $10.
- A break above the descending parallel channel middle resistance may validate the uptrend.
- The MACD has a vivid bearish signal, likely to delay the anticipated recovery.
Theta Network has sustained a downtrend in a descending parallel channel, as illustrated on the four-hour chart. This breakdown started in May and has mainly been unstoppable. Meanwhile, with support at $5.7 becoming firm, bulls will finally take up the mantle.
Can Theta Price nurture the uptrend to $10?
At the time of writing, THETA teeters at $5.93 amid a growing push from the bulls to close the day above the descending channel’s middle resistance. The 50 Simple Moving Average (SMA) adds credence to the seller congestion at this level. More buy orders will be triggered if this hurdle is broken, allowing bulls to reach above the channel’s upper edge and perhaps clear the path to $10.
THETA/USD four-hour chart
The Moving Average Convergence Divergence (MACD) has recently presented a sell signal on the four-hour chart. This is a technical indicator designed to explore the relationship between exponential moving averages (EMAs), primarily the 12-day and the 26-day.
The trend-following tool contains the MACD line, a signal line, and a histogram (clearly displaying the difference between the MACD line and the signal line).
The MACD lines oscillate around a mean line (zero line), giving the impression of oversold or overbought market conditions. This indicator measures the momentum or the strength of a trend and sends out bearish or bullish signals. Note that the MACD line will cross above the zero line during an uptrend, while in a downtrend, it will cross below it.
Traders use the MACD to identify buy and sell signals, as shown on Theta Network chart. If the MACD crosses above the signal line (blue), a buy signal will occur. However, the current signal is bearish and flashed when the 12-day EMA crossed beneath the 26-day EMA.
It is worth mentioning that the bullish outlook will gain momentum if Theta Network closes the day above the 50 SMA on the four-hour chart. Massive buy orders will be triggered on cracking the channel’s upper trend line resistance; a move could bolster THETA toward $10.