Theta Network Price Forecast: THETA At The Last Line Of Defense, Freefall To $5.5 Looms
- Theta Network’s recovery stalls at $8.55, resulting in a correction to $7.
- The 23.6% Fibonacci level provides immediate support as bulls fight to resume the uptrend.
- A couple of sell signals from the TD Sequential indicators are expected in the coming days.
Theta Network had grown 142% from the lows traded in July before the uptrend waned. This recovery was in tandem with other crypto assets in the market. Bitcoin brushed shoulders with $48,000 this week before retreating to affirm support at $44,000 on Wednesday. Ethereum extended the uptrend to $3,350, but a recent correction tested $3,000.
In the meantime, Theta is trading at $7 following a minor correction from $8.55. The 100 Simple Moving Average (SMA0 and the 200 SMA did little to stop the declines. Hence, the downtrend seems far from over.
Theta Network Price Could Lose More Ground Amid Increasing Sell Signals
According to the daily chart, Theta’s immediate downside is protected by the 23.6% Fibonacci level of the last swing high at $16.75 and a swing low of $3.5. This is indeed that last line of defense, and it is imperative to say that THETA is dancing at the edge of a cliff.
Trading below this support line could trigger massive losses that might only be halted by the following tentative support at $5.5. Nonetheless, the 50-day SMA currently holding at $6 may reduce the downtrend’s momentum, thus preventing extended declines.
In addition to the bearish outlook, the Moving Average Convergence Divergence (MACD) indicator is about to send a sell signal. Analysts find this technical index, which follows the trend of an asset and calculates the momentum to be a helpful tool when predicting price action.
The call to sell Theta will appear as the 12-day Exponential Moving Average (EMA) moves below the 26-day EMA. Note that THETA’s retreat will intensify as the MACD moves back to the mean line and dives into the negative region.
THETA/USD Daily Chart
According to the 12-hour and the three-day charts, the TD Sequential indicator may present a sell signal in the coming sessions or days. A call to sell Theta manifests in a green nine candlestick and implies that bulls will likely lose traction, allowing bears to take control.
THETA/USD 12-Hour And 3-Day Charts
It is worth keeping in mind that a red two candlestick trading below a preceding red one candle could serve as confirmation that Theta is poised to drop further.
On the upside, the uptrend may be resume if support at the 23.6% Fibo remains intact. Settling above this zone would ensure stability is retained in the market. At the same time, buyers will have a fight chance for gains above $8.5 and toward $10.