2021 was a rollercoaster ride 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 fed and trers moved into greener pastures.
This is exactly what happened with Theta, a decentralized brocasting platform that allows users to earn rewards by contributing their computing resources toward the health of the network.
Theta token kicked off its run on Dec. 11, 2020, when it rose 2,468% from a price of $0.621 to a new record high at $15.90 on April 16, 2021, as Global 500 firms like Google and Sony Europe joined the network’s validator program and Theta Labs was granted its second patent on designs for decentralized blockchain-based video and data delivery.
Data from Cointelegraph Markets Pro and TringView shows that, since hitting a high of $5.98 on Dec. 27, the price of Theta has slid down to its major support near $3.85 as the wider cryptocurrency market fell under pressure.
THETA/USDT 1-day chart. Source: TringView
Even with the reversal of fate, Theta still has a handful of fundamental reasons for holders to be bullish in the long-term.
Three reasons to remain bullish on THETA in 2022 include the upcoming launch of the ThetaDrop nonfungible token (NFT) marketplace, the dition of new staking resources and the overall focus on live streaming and gaming which is currently supported by big-name partnerships and integrations.
ThetaDrop launches on February 1
One of the biggest developments for Theta in 2022 will be the full launch of its ThetaDrop NFT marketplace. Plans on airdropping the TDrop governance tokens to members of the Theta community start on Feb. 1.
ThetaDrop does not have any plans for a token sale and inste plans to release its 20 billion token supply over a four-year period to members of the community who provide NFT liquidity mining or stake THETA, TFUEL and TDRop on the network.
TDrop supply release schedule. Source: TDrop whitepaper
On top of the upcoming ThetaDrop launch, the network has also seen a handful of new projects launch on its blockchain, including the OpenTheta NFT marketplace and the Voltswap DeFi platform, which supports the swapping of Theta based assets.
Protocols like Meter Passport and ThetaBridge also support asset bridging between Theta and other Ethereum virtual machine (EVM) compatible networks.
Staking access improves
Improving access to staking is another potentially bullish factor for Theta and its TFUEL utility and gas token.
When the network first launched, users were required 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 run above $14 in early 2021 resulted in most token holders being unable to meet this threshold as well.
This led to the creation of sites like GPooL and, more recently, Thetaboard which gives THETA and TFUEL holders access to staking for a small commission.
Thetaboard 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 live @ThetaDrop! Go 2 https://t.co/47eohxS34i to get ur limited edition NFTs (1️⃣of em is only available for 24 hrs) &if ur feeling bold u can bid to OWN one of my BIGGEST show props of all time!
Speaking of REAL BIG stay tuned for #PLAY NFTs pic.twitter.com/K7PxnxdhvK
— KATY PERRY (@katyperry) December 15, 2021
Related: Year of ships: Celebrities who embraced crypto in 2021
Blockchain gaming and video streaming are still growing sectors
A third reason for taking a bullish stance on Theta in the future is the protocol’s focus on vancing blockchain-based video streaming and gaming and its current partnerships with Samsung and Sony.
Gaming was one of the breakout sectors of the crypto ecosystem in 2021 and that trend looks to remain strong in 2022 as blockchain technology continues down the ro to mass option.
Users of the Theta.tv interface can earn rewards by watching members of the community play 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 also stands to benefit from multiple big-name collaborations including a partnership with Samsung that will see the Theta.tv app preloed on smart TVs released by the company. This will enable users to receive TFUEL rewards for watching their favorite shows. Theta also has partnerships with Google, Sony and all three companies (Samsung included) operate as validator nodes for the network.
While THETA’s fundamentals look attractive, let’s see what the charts project.
Theta (THETA) has been tring inside a descending triangle pattern for the past several weeks. The 20-week exponential moving average ($5.64) has turned down and the relative strength index (RSI) is in the negative territory.
THETA/USDT weekly chart. Source: TringView
This suggests that the path of least resistance is to the downside. The previous rebound off the strong support at $3.85 turned down from the 20-week EMA. Hence, this becomes the key resistance to watch out for in the short term.
If the price bounces off the current level but once again turns down from the 20-week EMA, it will indicate that bears are selling on every minor rally. That will increase the possibility of a break below $3.85. If that happens, the THETA/USDT pair could slide to $1.46.
Contrary to this assumption, if bulls drive the price above the 20-week EMA, it will be the first sign that the selling pressure could be reducing. The pair could then rise to the 50-week simple moving average ($6.88) and later to the downtrend line.
THETA/USDT daily chart. Source: TringView
The pair bounced off the $3.85 support on Jan. 11, indicating that bulls are accumulating on dips. The RSI has formed a positive divergence, suggesting that the selling pressure could be reducing.
If bulls drive the price above the 20-day EMA ($4.41), the pair could rise to the downtrend line. This level may act as a stiff resistance, but if bulls overcome it the pair could rally to $5.94. A break and close above this level could complete a double bottom pattern in the short term. This setup has a pattern target at $8.03.
Conversely, if the price turns down from the 20-day EMA or the downtrend line, it will suggest that sentiment remains negative and trers are selling on rallies. The bears will then attempt to pull and sustain the pair below the $3.85 to $3.50 support zone. If they succeed, it will signal the start of the next leg of the downtrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and tring move involves risk, you should conduct your own research when making a decision.
* Technical analysis of THETA provided by Rakesh Uphyay
META ARTICLE: Down, but not out: Here’s why Theta could be a breakout star in 2022 PUBLISHED: 2022-01-17 20:28:06 SOURCE: https://cointelegraph.com/news/down-but-not-out-here-s-why-theta-could-be-a-breakout-star-in-2022