- Theta price faces strong resistance at 161.8% Fibonacci expansion level at $ 11.34.
- The Momentum Reversal Indicator (MRI) has triggered a “top preventive” signal, suggesting that the rally may be coming to an end.
- A key daily candlestick close above $ 11.34 could trigger a bullish scenario for THETA.
The theta price rally could soon end if it approaches a significant resistance zone coupled with a sell signal.
The theta price is approaching the overhead barrier
The theta price has increased 300% in less than a month. That bull run could come to an end, however, as THETA approaches another crucial point in its rebound, the Fibonacci extension level of 161.8% at $ 11.34.
On the MRI indicator, a “preventive top” in the form of a yellow downward arrow flashed on the 1-day and 1-week charts. This setup predicted a correction of one to four candles.
Therefore, a combination of the Fibonacci expansion of 161.8% and the “top” signal from the MRI indicator could play a crucial role in ending the THETA bull rally.
If the correction played out, the theta price could decline 15% to $ 9.2. An overwhelming bearish pressure could extend that decline another 9% to $ 8.30.
THETA / USDT 1-day, 1-week chart
On the flip side, investors need to understand that sell signals tend to go broke in a strong bull trend. In addition, the MRI’s sell signal is “preventive” and there is a chance it could go broke.
If so, the theta price could quickly rise above the $ 11.34 mark, which coincides with the Fibonacci extension level of 161.8%. A critical close above this point could cause the theta price to rise 41% to 200% of the Fibonacci expansion level at $ 16.01.