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Down, but not out: Here’s why Theta could be a breakout star in 2022

2021 was a rollercoaster journey for a lot of tasks 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 challenge light and merchants moved into greener pastures.

That is precisely what occurred with Theta, a decentralized broadcasting platform that permits 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 report excessive at $15.90 on April 16, 2021, as World 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 information supply.

Knowledge from Cointelegraph Markets Professional and TradingView reveals that, since hitting a excessive of $5.98 on Dec. 27, the value of Theta has slid right down to its main assist close to $3.85 as the broader cryptocurrency market fell underneath stress.

THETA/USDT 1-day chart. Supply: TradingView

Even with the reversal of destiny, Theta nonetheless has a handful of elementary 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 recent staking sources and the general deal with reside streaming and gaming which is presently supported by big-name partnerships and integrations.

ThetaDrop launches on February 1

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One of many 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 an alternative 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.

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TDrop provide launch schedule. Supply: TDrop whitepaper

On high of the upcoming ThetaDrop launch, the community has additionally seen a handful of recent tasks launch on its blockchain, together with the OpenTheta NFT market and the Voltswap DeFi platform, which helps the swapping of Theta based mostly belongings.

Protocols like Meter Passport and ThetaBridge additionally assist asset bridging between Theta and different Ethereum digital machine (EVM) suitable networks.

Staking entry improves

Enhancing 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. Ultimately, 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 effectively.

This led to the creation of websites like GPooL and, extra just 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 standard celebrities like Katy Perry.

Associated: Yr of sponsorships: Celebrities who embraced crypto in 2021

Blockchain gaming and video streaming are nonetheless rising sectors

A 3rd purpose for taking a bullish stance on Theta sooner or later is the protocol’s deal with advancing blockchain-based video streaming and gaming and its present partnerships with Samsung and Sony.

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Gaming was one of many breakout sectors of the crypto ecosystem in 2021 and that pattern seems to stay sturdy in 2022 as blockchain know-how continues down the highway to mass adoption.

Customers 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 Sequence 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 may 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.

Whereas THETA’s fundamentals look enticing, let’s see what the charts challenge. 

THETA/USD

Theta (THETA) has been buying and selling inside a descending triangle sample for the previous a number of weeks. The 20-week exponential transferring common ($5.64) has turned down and the relative power index (RSI) is within the damaging territory.

THETA/USDT weekly chart. Supply: TradingView

This implies that the trail of least resistance is to the draw back. The earlier rebound off the sturdy assist at $3.85 turned down from the 20-week EMA. Therefore, 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 would point out that bears are promoting on each minor rally. That may improve the potential for a break beneath $3.85. If that occurs, the THETA/USDT pair may slide to $1.46.

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Opposite to this assumption, if bulls drive the value above the 20-week EMA, it will likely be the primary signal that the promoting stress may very well be lowering. The pair may then rise to the 50-week easy transferring common ($6.88) and later to the downtrend line.

THETA/USDT day by day chart. Supply: TradingView

The pair bounced off the $3.85 assist on Jan. 11, indicating that bulls are accumulating on dips. The RSI has fashioned a constructive divergence, suggesting that the promoting stress may very well be lowering.

If bulls drive the value above the 20-day EMA ($4.41), the pair may rise to the downtrend line. This degree might act as a stiff resistance, but when bulls overcome it the pair may rally to $5.94. A break and shut above this degree may 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 would counsel that sentiment stays damaging 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. In the event that they succeed, it would sign the beginning of the following leg of the downtrend.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you need to conduct your individual analysis when making a call.

* Technical evaluation of THETA supplied by Rakesh Upadhyay

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