The cryptocurrency market advances this Wednesday, Bitcoin has advanced above the $ 36,000 resistance, but traders should be aware that the risk of another drop is not over yet. THETA / USD has weakened from the all-time highs above $ 15, recorded on April 16, below $ 4, with the current price hovering around $ 9.
Fundamental Analysis: Theta Will Increase Transaction Fees
Theta is a decentralized peer-to-peer network that launched in 2019 and according to Steve Chen, YouTube co-founder, this network could improve the video streaming industry. Theta offers better video delivery from esports, music, movies to distance education at lower costs.
Theta offers smoother and higher quality video streaming, while also motivating all stakeholders to participate in fully decentralized video delivery. Theta has seen tremendous growth in its user activity this year, and to better align value with the volume of transactions on its blockchain, a moderate increase in fees on this protocol is necessary.
“Currently, the fees on the Theta network are close to zero, and after the proposed increase it would still be low enough and profitable for smart contracts and Dapps with transaction fees of 0.3 TFUEL for shipping transactions, 20 TFUEL to implement a smart contract , and 1 TFUEL to interact with a smart contract, “Theta’s team had reported last week.
The Theta transaction fee increase will be included in the next protocol update, but even with this increase, the transaction fee increase is still 90% lower than current fees on Ethereum. Theta (THETA) price has skyrocketed since March 2021 and hit a record high above $ 15 on April 16. Since then, the price has collapsed, daily trading volume has weakened, and the risk of further declines is probably not over.
The cryptocurrency market is moving forward this Wednesday, but it is probably not the best time to invest in THETA. There is a lot of negative news for the crypto market recently, and the concern among traders is that it may take a long time for prices to see a further recovery.
Technical analysis: the risk of further falls is probably not over
The cryptocurrency market is still under pressure, the price of THETA can easily return below the $ 6 support and it is probably not the best time to invest in this cryptocurrency.
Data source: tradingview.com
THETA is currently trading around the $ 9 level, but it would be a strong sell signal if the price falls below the $ 8 support. The next price target could be around $ 6 or even $ 5; Still, if the price falls above $ 10, we have the road open to $ 12.
Resume
Theta (THETA) has weakened from all-time highs above $ 15, recorded on April 16, and the risk of further declines is probably not over. According to the latest news, Theta will increase transaction fees, but even with this increase, they are still 90% lower than current fees on Ethereum.
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