THETA 32% rally in jeopardy as immense resistance emerge at $14
THETA rallies towards all-time highs following a bounce from key support at $10.
The MACD has a bearish impulse, suggesting that THETA would correct toward the 50 SMA.
THETA is among the few double-digit gainers in the cryptocurrency market. This token has had a tremendously yielding first quarter of 2021. THETA has quickly grown from a less known cryptoasset, making it into the top ten. It has a market cap of $13 billion and is holding the eighth position in the market.
At the time of writing, THETA is exchanging hands at $13.12 after meeting acute resistance at $14. Holding above $13 will ensure that the accrued gains are not lost and guarantee stability in the market. Note that buyers have their eyes glued on $15, the current all-time high.
On the flip side, massive declines are likely to come into the picture if the token fails to hold at $13. Tentative support areas include $12 and the 50 Simple Moving Average (SMA) on the 4-hour chart.
The Moving Average Convergence Divergence appears to validate the correction. This is a momentum oscillator utilized in trading trends but rarely used to identify overbought and oversold conditions.
The indicator manifests on a chart with a couple of trendlines oscillating with no boundaries. Note that the crossover of these two lines is a trading signal resembling that of the moving average system.
It is essential to keep in mind that crossing above the midline (zero line) is regarded as bullish, while crossing below the same line is bearish. Moreover, when the MACD line (blue) crosses above the signal line, it is bullish. On the other hand, the trend tends to flip bearish when the MACD line crosses under the signal line.
Therefore, THETA is most likely to incur losses instead of continuing with the rally in the short-term.
THETA intraday levels
Spot rate: $13.1
Relative change: -0.05
Relative change: -0.2%
Trend: Bullish
Support: 50 SMA on the 4-hour chart
Resistance: $14
