2021 was a rollercoaster experience for a lot of initiatives within the cryptocurrency market however as is the character of crypto, many tokens hit new all-time highs after which spent the next months drifting decrease because the hype surrounding the venture light and merchants moved into greener pastures.
This is precisely what occurred with Theta, a decentralized broadcasting platform that enables customers to earn rewards by contributing their computing sources towards the well being of the community.
Theta token kicked off its run on Dec. 11, 2020, when it rose 2,468% from a worth of $0.621 to a brand new document excessive at $15.90 on April 16, 2021, as Global 500 companies like Google and Sony Europe joined the community’s validator program and Theta Labs was granted its second patent on designs for decentralized blockchain-based video and knowledge supply.
Data from Cointelegraph Markets Pro and TradingView reveals that, since hitting a excessive of $5.98 on Dec. 27, the value of Theta has slid all the way down to its main assist close to $3.85 as the broader cryptocurrency market fell beneath strain.
THETA/USDT 1-day chart. Source: TradingView
Even with the reversal of destiny, Theta nonetheless has a handful of basic causes for holders to be bullish within the long-term.
Three causes to stay bullish on THETA in 2022 embody the upcoming launch of the ThetaDrop nonfungible token (NFT) market, the addition of latest staking sources and the general concentrate on dwell streaming and gaming which is presently supported by big-name partnerships and integrations.
ThetaDrop launches on February 1
One of the largest developments for Theta in 2022 would be the full launch of its ThetaDrop NFT market. Plans on airdropping the TDrop governance tokens to members of the Theta group begin on Feb. 1.
ThetaDrop doesn’t have any plans for a token sale and as a substitute plans to launch its 20 billion token provide over a four-year interval to members of the group who present NFT liquidity mining or stake THETA, TFUEL and TDRop on the community.
TDrop provide launch schedule. Source: TDrop whitepaper
On prime of the upcoming ThetaDrop launch, the community has additionally seen a handful of latest initiatives launch on its blockchain, together with the OpenTheta NFT market and the Voltswap DeFi platform, which helps the swapping of Theta primarily based belongings.
Protocols like Meter Passport and ThetaBridge additionally assist asset bridging between Theta and different Ethereum digital machine (EVM) appropriate networks.
Staking entry improves
Improving entry to staking is one other probably bullish issue for Theta and its TFUEL utility and gasoline token.
When the community first launched, customers had been required to stake a minimal of 10,000 THETA to function a guardian node and assist safe the community. Eventually, the required minimal was lowered to 1,000, however Theta’s worth run above $14 in early 2021 resulted in most token holders being unable to satisfy this threshold as properly.
This led to the creation of web sites like GPooL and, extra lately, Thetaboard which provides THETA and TFUEL holders entry to staking for a small fee.
Thetaboard additionally launched its personal NFT market to serve the rising NFT ecosystem which incorporates restricted editions of NFT collections launched by well-liked celebrities like Katy Perry.
THE ROAR COLLECTION is now dwell @ThetaDrop! Go 2 https://t.co/47eohxS34i to get ur restricted version NFTs (1️⃣of em is barely obtainable for twenty-four hrs) &if ur feeling daring u can bid to OWN considered one of my BIGGEST present props of all time!
Speaking of REAL BIG keep tuned for #PLAY NFTs pic.twitter.com/K7PxnxdhvK
— KATY PERRY (@katyperry) December 15, 2021
Related: Year of sponsorships: Celebrities who embraced crypto in 2021
Blockchain gaming and video streaming are nonetheless rising sectors
A 3rd cause for taking a bullish stance on Theta sooner or later is the protocol’s concentrate on advancing blockchain-based video streaming and gaming and its present partnerships with Samsung and Sony.
Gaming was one of many breakout sectors of the crypto ecosystem in 2021 and that pattern seems to stay robust in 2022 as blockchain expertise continues down the street to mass adoption.
Users of the Theta.television interface can earn rewards by watching members of the group play video games like League of Legends or The Witcher 3: Wild Hunt. Non-gamers can watch, contribute and earn by watching channels from NASA or the World Series of Poker.
The protocol additionally stands to profit from a number of big-name collaborations together with a partnership with Samsung that may see the Theta.television app preloaded on sensible TVs launched by the corporate. This will allow customers to obtain TFUEL rewards for watching their favourite reveals. Theta additionally has partnerships with Google, Sony and all three corporations (Samsung included) function as validator nodes for the community.
While THETA’s fundamentals look enticing, let’s see what the charts venture.
Theta (THETA) has been buying and selling inside a descending triangle sample for the previous a number of weeks. The 20-week exponential shifting common ($5.64) has turned down and the relative power index (RSI) is within the destructive territory.
THETA/USDT weekly chart. Source: TradingView
This means that the trail of least resistance is to the draw back. The earlier rebound off the robust assist at $3.85 turned down from the 20-week EMA. Hence, this turns into the important thing resistance to be careful for within the quick time period.
If the value bounces off the present degree however as soon as once more turns down from the 20-week EMA, it can point out that bears are promoting on each minor rally. That will improve the opportunity of a break beneath $3.85. If that occurs, the THETA/USDT pair might slide to $1.46.
Contrary to this assumption, if bulls drive the value above the 20-week EMA, it is going to be the primary signal that the promoting strain may very well be lowering. The pair might then rise to the 50-week easy shifting common ($6.88) and later to the downtrend line.
THETA/USDT each day chart. Source: TradingView
The pair bounced off the $3.85 assist on Jan. 11, indicating that bulls are accumulating on dips. The RSI has shaped a optimistic divergence, suggesting that the promoting strain may very well be lowering.
If bulls drive the value above the 20-day EMA ($4.41), the pair might rise to the downtrend line. This degree might act as a stiff resistance, but when bulls overcome it the pair might rally to $5.94. A break and shut above this degree might full a double backside sample within the quick time period. This setup has a sample goal at $8.03.
Conversely, if the value turns down from the 20-day EMA or the downtrend line, it can recommend that sentiment stays destructive and merchants are promoting on rallies. The bears will then try to tug and maintain the pair beneath the $3.85 to $3.50 assist zone. If they succeed, it can sign the beginning of the subsequent leg of the downtrend.
The views and opinions expressed listed here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer includes danger, it’s best to conduct your personal analysis when making a call.
* Technical evaluation of THETA offered by Rakesh Upadhyay