Theta Token (THETA) Barely Holds on Above July Lows

Theta Token (THETA) has bounced significantly since its Dec 4 lows however has but to substantiate its bullish reversal.

THETA has been lowering since Sept 7. The lower has been contained inside a descending parallel channel, which is taken into account a corrective sample. This implies that an eventual breakout from it might be doubtless. 

On Dec 4, the token bounced on the assist line of the channel, validating it for the primary time since Sept. 

More importantly, THETA managed to carry on above the July lows of $ (crimson line). This is vital because it implies that it’s nonetheless doable that the token started a bullish impulse on July 19, and the present lower is just a correction. 

However, technical indicators within the each day timeframe are bearish. 

The MACD, which is created by a short- and a long-term transferring common (MA), is unfavourable and lowering. This implies that the short-term MA is slower than the long-term one, and sometimes happens in bearish developments. 

Similarly, the RSI, which is a momentum indicator, is under 50. This can be an indication of a bearish pattern.

Therefore, whereas the likelihood that THETA is bullish nonetheless stays, there are not any bullish reversal indicators in place.

Chart By TradingView

Cryptocurrency dealer @AltcoinSherpa outlined a THETA chart, which exhibits the token buying and selling inside a channel. Since the tweet, it has fallen to the assist line of the channel and bounced.

Source: Twitter

Short-term motion

The shorter-term two-hour chart exhibits that THETA has already created a better low (inexperienced icon) after the bounce. 

Furthermore, the MACD and RSI are each displaying bullish indicators. Both are rising, and the RSI has already moved above 50, even when the MACD will not be but optimistic. 

However, there may be robust resistance at $6.10, created by a horizontal space and the 0.618 Fib retracement resistance stage. It additionally coincides with the center of the long-term channel. 

Until THETA manages to reclaim this space, the pattern can’t be thought-about bullish.

Chart By TradingView

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