2021 was a rollercoaster for many projects in the cryptocurrency market, but as is the nature of crypto, many tokens hit new all-time highs and then spent the following months drifting lower. as the hype surrounding the project died down and traders moved to greener pastures.
This is exactly what happened with Theta, a decentralized streaming platform that allows users to earn rewards by contributing their computing resources to the health of the network.
The Theta token started its run on December 11, 2020, when it rose 2,468% from a price of $0.621 to a new high of $15.90 on April 16, 2021, as companies across the Global 500 such as Google and Sony Europe have joined the network validation program. and Theta Labs was awarded its second patent on designs for decentralized blockchain-based video and data delivery.
Data from TBEN Markets Pro and TradingView shows that since hitting a high of $5.98 on Dec. 27, Theta price has fallen to its major support near $3.85 as the broader market cryptocurrency was falling under pressure.
Even with the reversal of fate, Theta still has a handful of fundamental reasons for holders to be bullish over the long term.
Three reasons to remain bullish on THETA in 2022 include the upcoming launch of the non-fungible token (NFT) market ThetaDrop, the addition of new staking resources, and the current supported focus on live streaming and gaming. through big name partnerships and integrations.
ThetaDrop will launch on February 1
One of the biggest developments for Theta in 2022 will be the full launch of its ThetaDrop NFT marketplace. Plans to airdrop TDrop governance tokens to members of the Theta community begin on February 1.
ThetaDrop has no plans to sell tokens and instead plans to release its supply of 20 billion tokens over a four-year period to community members who provide NFT liquidity mining or who invest THETA, TFUEL and TDRop on the network.
In addition to the upcoming ThetaDrop launch, the network has also seen the launch of a handful of new projects on its blockchain, including the OpenTheta NFT marketplace and the Voltswap DeFi platform, which supports the exchange of assets based on on Theta.
Protocols such as Meter Passport and ThetaBridge also support asset bridging between Theta and other Ethereum Virtual Machine (EVM) enabled networks.
Access to staking improves
Improved access to staking is another potentially bullish factor for Theta and its utility and gas token TFUEL.
When the network first launched, users had to stake a minimum of 10,000 THETA to operate a guardian node and help secure the network. Eventually, the required minimum was lowered to 1,000, but Theta’s price rose above $14 in early 2021, which prevented most token holders from reaching that threshold as well.
This has led to the creation of sites like GPooL and, more recently, Thetaboard which gives THETA and TFUEL holders access to staking for a small fee.
Thetaboard has also launched its own NFT marketplace to serve the growing NFT ecosystem, which includes limited editions of NFT collections released by popular celebrities like Katy Perry.
THE ROAR COLLECTION is now online @ThetaDrop! Go 2 https://t.co/47eohxS34i to get your limited edition NFTs (1️⃣of em is only available for 24 hours) and if you’re feeling daring you can bid to own one of my GREATEST accessories show of all time!
Speaking of REAL BIG, stay tuned for #PLAYER NFT pic.twitter.com/K7PxnxdhvK— KATY PERRY (@katyperry) December 15, 2021
Related: Year of sponsorships: celebrities who embraced crypto in 2021
Chained games and video streaming are still growing sectors
A third reason to take an optimistic stance on Theta going forward is the protocol’s focus on advancing blockchain-based video streaming and gaming and its current partnerships with Samsung and Sony.
Gaming was one of the breakout sectors in the crypto ecosystem in 2021 and this trend looks set to remain strong in 2022 as blockchain technology continues on the path to mass adoption.
Users of the Theta.tv interface can earn rewards by watching community members play games like League of Legends or The Witcher 3: Wild Hunt. Non-players can watch, contribute and win watching NASA Channels or the World Series of Poker.
The protocol is also set to benefit from several big-name collaborations, including a partnership with Samsung that will see the Theta.tv app preloaded on smart TVs released by the company. This will allow users to receive TFUEL rewards for watching their favorite shows. Theta also has partnerships with Google, Sony, and all three companies (Samsung included) function as validating nodes for the network.
Although THETA’s fundamentals look attractive, let’s see what the charts are projecting.
THETA/USD
Theta (THETA) has been trading inside a descending triangle pattern for several weeks. The 20-week exponential moving average ($5.64) has declined and the Relative Strength Index (RSI) is in negative territory.
This suggests that the path of least resistance is downside. The previous bounce off strong support at $3.85 was rejected against the 20-week EMA. Therefore, this becomes the main resistance to watch in the short term.
If the price bounces off the current level but falls again from the 20 week EMA, this will indicate that the bears are selling on every minor rally. This will increase the possibility of a break below $3.85. If that happens, THETA/USDT could slip to $1.46.
Contrary to this assumption, if the bulls push the price above the 20-week EMA, this will be the first sign that the selling pressure may be easing. The pair might then reach the 50-week simple moving average ($6.88) and later the downtrend line.
The pair bounced off the $3.85 support on January 11, indicating that the bulls are piling up on the dips. The RSI has formed a positive divergence, suggesting that the selling pressure may be easing.
If the bulls push the price above the 20-day EMA ($4.41), the pair could reach the downtrend line. This level may act as strong resistance, but if the bulls overcome it, the pair could rally to $5.94. A break and close above this level could complete a short-term double bottom pattern. This setup has a pattern target at $8.03.
Conversely, if the price is falling from the 20-day EMA or the downtrend line, this will suggest that sentiment remains negative and traders are selling on rallies. The bears will then attempt to pull and hold the pair below the $3.85-$3.50 support area. If successful, this will signal the start of the next leg of the downtrend.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
* Technical analysis of THETA provided by Rakesh Upadhyay