• Theta price hit a top after the second reversal signal was spotted on March 23.
  • The 28% correction could extend another 20% as a stable support barrier at $11.34 gives in.
  • A decisive close above $11.34 leading to a spike in buyers could trigger an upswing.

Theta price flashes two major sell signals that indicate a bearish regime is underway.

Theta price eyes a pullback

Theta price has appreciated one parabolic run after another from under $2 to almost hitting $15. Now, the market participants seem to be booking profits as major red flags develop across the board.

If the investors continue with selling THETA, this correction could prove fatal. At the time of writing, the Momentum Reversal Indicator (MRI) has flashed not one but two “cycle top” signals in the form of a red down arrow on the 4-hour chart. 

This setup forecasts a one-to-four candlestick correction. Theta price retraced, and as a result, a crucial support barrier at $11.34 coinciding with the 161.8% Fibonacci retracement level was breached.

A sustained bearish pressure that keeps Theta price under this barrier could spell disaster for the cryptocurrency. In such a scenario, THETA will likely continue its descent to the immediate demand barrier at $9.64, which coincides with the 50 four-hour Simple Moving Average (SMA).

Following this, the MRI’s breakout line at $9.21, acting as an intermediary support level, will also play a pivotal role. If this zone breaks down, 127.2% Fibonacci retracement level at $8.30 will be tapped.

Adding credibility to this bearish outlook is the recently spawned “sell signal” by the SuperTrend indicator.

THETA/USDT 4-hour chart

THETA/USDT 4-hour chart

Regardless of the selling pressure, if bulls manage to keep Theta price above $11.34, the pessimistic outlook can be delayed. However, a decisive close above $14.43 that creates a higher could invalidate the bearish scenario and kickstart a fresh uptrend.

If this were to happen, THETA could surge 10% to 200% Fibonacci retracement level at $16.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Dogecoin bulls hold the key for 40% gains

Dogecoin price has seen a massive surge after Elon Musk’s recent tweet revealed that he is working with the developers of the meme coin to improve its transaction efficiency. With DOGE approaching a critical point in its uptrend, more gains stand to be realized if buyers push through.

More Dogecoin News

Ethereum Classic targets $500 next

Ethereum Classic price surged by over 400% during the first week of May, creating a new all-time high at nearly $180. ETC has retraced since then by over 50% and is currently trading at $0.87. Now, this cryptocurrency seems prime to resume its uptrend as it tries to break out from a continuation pattern.  

More Ethereum Classic News

Ripple reversal could result in 30% advance

XRP price has witnessed a massive crash due to the Tesla-induced market crash on Wednesday. Now Ripple could either test the immediate demand barrier or slice through the supply zone to rally higher.

More Ripple News

Bitcoin clings to support, on-chain metrics show sellers' onslaught

Bitcoin price underwent a severe nosedive as Elon Musk revealed Tesla’s decision on accepting payment in BTC. This development was the major highlight of the week, with the recent mining difficulty adjustment coming in at a close second. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP