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Theta token (THETA) barely survives at the July lows

Theta Token (THETA) has rallied significantly from its December 4th lows, but has yet to confirm its bullish reversal.

THETA has been in decline since September 7th. The decline has been contained in a descending parallel channel that is considered a corrective pattern. This means that an eventual breakout from it would be likely.

On December 4, the token bounced off the channel’s support line, confirming it for the first time since September.

More importantly, THETA managed to hold above the July lows of $ (red line). This is important as it is still possible for the token to kick in a bullish impulse on July 19th and the current decline to be just a correction.

However, the technical indicators in the daily timeframe are falling.

The MACD, which is made up of a short-term and a long-term moving average (MA), is negative and is falling. This means that the short-term MA is slower than the long-term and often occurs in bearish trends.

Likewise, the RSI, a momentum indicator, is below 50. This is also a sign of a bearish trend.

As such, while there is a possibility that THETA will continue to be bullish, there are no signs of a bullish reversal.

Chart according to TradingView

Cryptocurrency trader @AltcoinSherpa has outlined a THETA chart showing token trading within a channel. Since the tweet, he has fallen and ricocheted on the channel’s support line.

Source: Twitter

Short term movement

The shorter-term 2-hour chart shows that THETA has already made a higher low (green symbol) after the rebound.

Additionally, the MACD and RSI are both showing bullish signs. Both are rising and the RSI has already moved above 50 even if the MACD is not yet positive.

However, there is strong resistance at $ 6.10 created by a horizontal area and the 0.618 Fib retracement resistance level. It also coincides with the middle of the long-term channel.

As long as THETA does not manage to regain this area, the trend cannot be viewed as bullish.

Chart according to TradingView

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