THETA abandons mission to new all-time highs as the decline subsides

• THETA loses its decisive support at the middle limit of the ascending parallel channel.
• Short term technical analysis based on the MACD suggests a breakdown is imminent.
• An increase in social volume shows that THETA’s ongoing uptrend may not be sustainable.
• Higher support, preferably above $ 7, would focus the bulls on new record highs above $ 10.

THETA has maintained the upward trend since the beginning of March. The bulls’ persistent advance has sparked speculation within the community that the altcoin is poised to hit the final bounce to new record highs above $ 10. However, the technical level is rapidly declining. This sabotages the uptrend and brings losses into the picture.

THETA bulls lose traction when overhead pressure increases

THETA is trading at $ 7.25 towards the end of the Asian session on Monday. The bullish formation over the weekend failed to break the recent all-time high of around $ 8. The correction that came into the picture caused THETA to lose the essential support provided by the middle border of the ascending triangle.

At the time of writing, THETA is trading at $ 7.15 amid mounting overhead pressures. If the USD 7 support does not hold, the bearish leg may extend towards the bottom of the channel.

The Moving Average Convergence Divergence (MACD) reinforced the bearish formation with its negative gradient. Additionally, when the MACD line (blue) crosses below the center line, massive declines will come into play.

THETA / USD 4 hour chart

According to Santiment, THETA is getting a lot of attention from the social media communities. The spike in chatter about the token may be reminiscent of the March 1st uptrend. However, high social volume is not a bullish signal and is often followed by a significant correction. When the price goes up, the social sentiment grows positively, but when mentions decrease, it starts to spin, causing losses.

THETA social volume

Look at the other side of the fence

The support at USD 7 remains crucial for the uptrend, firstly above the all-time high, secondly when taking off to USD 10. However, in order to maintain the uptrend, THETA needs to recapture the ground above the middle limit level of the ascending channel. Trading above this zone will encourage the bulls to push for $ 10.