As the halving hype has now passed for Bitcoin (BTC), altcoins are beginning to regain traction. In that regard, many altcoins have been showing significant movements in the past two weeks.
One of the biggest gainers is Theta Token (THETA), which gained 1,000% since the crash on Black Thursday, March 12. The second token of the Theta platform is called Theta Fuel (TFUEL) has also surged more than 1,150% in a matter of one week.
Crypto market daily performance. Source: Coin360
Theta Token reaches new highs, but is it time to buy?
As the candles are getting greener and greener, people are getting triggered by FOMO, hype, and emotional bias towards entering these strong altcoin rallies.
Where did we see that before? During the pre-halving rally, traders and investors were eager to step into the markets at $10,000. However, the same traders and investors have a hard time stepping in when a coin retraces.
In that regard, the next chart shows the massive surge of THETA in recent months.
THETA/USD 2-day chart. Source: TradingView
THETA made an 80% crash in March, after which the lows were tested and confirmed for support, again.
Since that crash, several support/resistance flips were done and confirmed the upwards continuation. One of them is found at $0.068 and the second one at $0.125.
However, the altcoin started to accelerate and speed up significantly in recent days, as the momentum and hype increased heavily. Today, Binance announced that the exchange will support the token’s mainnet upgrade. This raises the question of whether this is another buy the rumor, sell the news event?
What should be stated? After such a peak rally, a correction and retracement are heavily needed. The left part of the chart is showing a similar surge, after which the price dropped down for support tests.
Therefore, it isn’t very reasonable to start entering coins in these zones with such an overextended price move.
The grey zones are pointed out as levels to watch, which are the $0.155-0.165 and…
… Continue Reading at: cointelegraph.com [source]