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The crypto asset known as Theta was the hottest altcoin in the space during May, but false rumors of a partnership with Google led to a strong selloff.
The downside in the cryptocurrency looks to continue, as two highly accurate sell signals have triggered on weekly timeframes on both the USD and BTC trading pairs.
Theta Pumps Nearly 400% Against the Dollar in May, 350% Against Bitcoin
At the start of May to the peak of the pump, the altcoin known as Theta rallied over 360% against Bitcoin. There was a matching nearly 400% rise on the USD trading pair.
The rally was fueled by false information spreading about a partnership with Google, however, it was later revealed that the partnership was simply Theta relying on Google’s cloud services on the client-side.
While no true partnership exists, the massive surge brought back memories of the crypto hype bubble.
Related Reading | Theta Cryptocurrency Plunges 50% As Traders Question Google Partnership
During that time, it wasn’t uncommon to see altcoins rally hundreds of percent against Bitcoin or the dollar.
While those days are long gone, and money won’t be as easy to come by during the next cycle, Theta’s recent explosion provides much-needed hope that a return to a crypto bull market may soon be coming.
But before any sustained bullish advance or uptrend begins, Theta is due for a stronger correction, according go a duo of highly accurate sell signals across the THETAUSD and THETABTC trading pairs.
USD & BTC Sell Signals Could Cause The Attractive Altcoin To Dump Further
Over the last month, few altcoins were discussed as highly as Theta. The asset quickly became the crypto industry’s hottest token.
But as soon as overly eager investors realized the partnership news was a non-event, a selloff cut the gains back significantly.
More downside is also very likely, given a set of sell setups signaled by the TD Sequential indicator on weekly timeframes.
The TD Sequential indicator is a market-timing tool developed by Thomas Demark. After a specific sequence of candles form, it often is a sign that a reversal or pullback is near.
Related Reading | Venture Capitalist: Crypto Gains Won’t Come As Easy During Next Bull Run
The signal has called many Bitcoin and altcoin tops and bottoms over the last several years, dating back to Bitcoin’s all-time high. It’s proven that its a tool that should never be underestimated.
The 9 sell setup has appeared on both THETAUSD and THETABTC price charts, suggesting that not only is a collapse in USD value expected, but the altcoin will underperform against Bitcoin in the days ahead.
TD 9 sell signals have appeared across most cryptocurrency assets, including Bitcoin, Ethereum, Chainlink, and countless others. The crypto market’s best performer, Theta, also sharing this signal doesn’t bode well for the entire asset class.
Crypto as a whole often follows Bitcoin’s lead, and while sentiment and fundamentals have never been more bullish for Bitcoin, the asset is also facing its strongest resistance yet.
Should another crash happen in Bitcoin ahead of a clean breakout from the downtrend, a lower high could cause extreme panic and a selloff will soon follow.
Bitcoin crashing from here would carry the entire crypto market down with it, Theta included.
