Theta Price Forecast: THETA screams sell as it approaches overbought territory
- Theta price rally could be coming to an end as the Tom DeMark (TD) Sequential indicator flashed a sell signal.
- History reveals that THETA drops an average of 20% each time this setup was presented.
- However, a 25% upswing can be expected if Theta bulls push the price past $5.37.
Theta price rally might be poised for a corrective wave as a crucial technical indicator has painted a “sell” signal on the 1-day chart.
Theta price hints at a pullback
Theta price has witnessed a 110% rally since the sell-off in February. Now, THETA faces a blockade at $5.37 that could prevent its market value from appreciating. Hence, a pullback to the immediate demand levels seems likely as this would provide the bulls a respite needed to continue their ascent.
Supporting this corrective phase for Theta price is the TD Sequential indicator, which has presented a sell signal in the form of a green nine candlestick on the 1-day chart. This technical formation forecasts a one-to-four candlestick correction.
Additionally, four out of five times when this TD setup was noticed, Theta price dropped an average of 20%. Hence, if something similar were to happen, THETA could be up for a pullback. Interestingly, the forecast puts Theta at $4.34, which coincides with the 78.6% Fibonacci retracement level.
THETA/USDT 1-day chart
Investors should note that an unforeseen spike in buying pressure coupled with retail FOMO could invalidate this bullish outlook. In such a case, Theta price could continue its uptrend and surge 24% to hit a supply barrier at $6.67 or the 127.2% Fibonacci retracement level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
