Theta (THETA) is down more than 73% from its all-time high (ATH), but there are still a number of reasons traders might be keeping an eye on the project.
2021 was a roller coaster ride for many projects in the crypto market, but as with the nature of cryptocurrencies, many tokens hit ATH and then went into a downtrend in the following months as excitement around the project died down and traders looked for better projects.
This is exactly what happened with Theta, a decentralized broadcasting platform that allows users to earn rewards by contributing their computing resources to the strength of the network.
The breakout of THETA token started on December 11, 2020 and grew by 2,468% from $0.621 to a new ATH of $15.9 on April 16, 2021 when Global 500 companies like Google and Sony Europe accepted the network’s validation program and Theta Labs was awarded a second patent on designs for decentralized blockchain-based data and video distribution.
Data from TradingView shows that THETA price has fallen to key support near $3.85 since hitting $5.98 on Dec 27 as the broader crypto market comes under pressure.
THETA/USDT daily frame price chart | Source: TradingView
Even when things go wrong, there are some reasons for theta holders to believe in the long-term uptrend.
Three reasons to remain optimistic for THETA in 2022 are the upcoming launch of the NFT marketplace ThetaDrop, the addition of new staking resources, and the focus on live streaming and games currently supported and integrated by notable partners.
ThetaDrop launches on February 1st
One of Theta’s biggest developments in 2022 will be the full launch of the ThetaDrop NFT marketplace. The plan to send the TDrop governance token to members of the Theta community begins on February 1st.
ThetaDrop has no plans to sell tokens and instead plans to release its stash of 20 billion tokens over a four-year period to community members who provide NFT liquidity or deploy THETA, TFUEL and TDRop on the network.
Tdrop release schedule | Source: Tdrop white paper
In addition to the upcoming ThetaDrop launch, several new projects have been launched on the network, including the OpenTheta NFT marketplace and the Voltswap DeFi platform, which supports Theta-based asset swaps.
Protocols such as Meter Passport and ThetaBridge also support asset connectivity between Theta and other Ethereum Virtual Machine (EVM) compatible networks.
Staking access is grantedimprove
Improved access to staking is another potential upside for Theta and its Gas token and TFUEL utility.
When the network was first launched, users had to deploy at least 10,000 THETA to run a depot node and help secure the network. Eventually, the required minimum was reduced to 1,000, but THETA price surged above $14 in early 2021, resulting in most holders failing to reach that threshold as well.
This has led to the creation of sites such as GPooL and more recently Thetaboard, which allow THETA and TFUEL holders to gain access to the stake for a small commission.
Thetaboard also launched its own NFT marketplace to serve the growing NFT ecosystem, which includes limited edition NFT collections published by celebrities such as Katy Perry.
????THE ROAR COLLECTION???? is now live @ThetaDrop! go 2 https://t.co/47eohxS34i to get your limited edition NFTs (1️⃣ of which is only available for 24 hours) & if you’re feeling brave you can bid on one of my BIGGEST show props ever! ????
Speaking of REAL BIG, stay tuned #PLAY NFTs pic.twitter.com/K7PxnxdhvK— KATY PERRY (@katyperry) December 15, 2021
Blockchain games and streaming video are still areas of growth
A third reason to be optimistic about the future of Theta is the protocol’s focus on promoting blockchain-based gaming and video streaming, as well as its current partnerships with Samsung and Sony.
Gaming is one of the disruptive areas of the crypto ecosystem in 2021, and this trend is likely to continue strongly into 2022 as blockchain technology continues to experience mass adoption.
Theta.tv interface users can earn rewards by watching videos from gaming community members such as League of Legends or The Witcher 3: Wild Hunt. Non-players can watch, contribute and earn by watching NASA or World Series of Poker channels.
The protocol also benefits from collaborations with many big names including Samsung, the Theta.tv application will be preloaded on the company’s smart TVs, allowing users to earn TFUEL rewards while watching their favorite shows. Theta also has partnerships with Google, Sony, and all three companies (including Samsung) to act as validation nodes for the network.
While the THETA basics look appealing, let’s see what the specs say.
THETA Technical Analysis
THETA has been trading inside a descending triangle pattern for the past few weeks. The 20-week exponential moving average at $5.64 is sloping down and the Relative Strength Index (RSI) is in negative territory.
Weekly frame THETA/USDT price chart | Source: TradingView
This suggests that the path of least resistance is to the downside. A bounce off the previous strong support at $3.85 was prevented by the 20-week EMA. Therefore, this is becoming an important resistance level to watch out for in the short term.
If THETA bounces off current levels but turns back down from the 20-week EMA, showing that the bears are selling on a minor bounce, it increases the likelihood of a dip below $3.85 and then a slide to 1, $46.
Contrary to this assumption, if the bulls propel the price above the 20-week EMA, it will be the first sign that the selling pressures may be easing. After that, THETA can rally to the 50-week simple moving average at $6.88 and eventually the downtrend line.
THETA/USDT daily frame price chart | Source: TradingView
THETA bounced off the $3.85 support on Jan 11th, showing the bulls are consolidating while the price is falling. The RSI has formed a positive divergence, which suggests that the selling pressure might be easing.
If the bulls propel the price above the 20-day EMA ($4.41), THETA can rally to the downtrend line. This level could act as a stiff resistance, but if the bulls break it THETA can rally to $5.94. A break and close above the 20-day EMA could complete a short-term double bottom with a target of $8.03.
Conversely, when the price turns down from the 20-day EMA or the downtrend line, it shows that sentiment remains negative and traders are selling on rallies. The bears will then attempt to pull and hold THETA below the $3.85-$3.85 support area, which will signal the start of an extended downtrend.
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Here’s why Theta could erupt in 2022
Theta (THETA) is down more than 73% from its all-time high (ATH), but there are still a number of reasons traders might be keeping an eye on the project.
2021 was a roller coaster ride for many projects in the crypto market, but as with the nature of cryptocurrencies, many tokens hit ATH and then went into a downtrend in the following months as excitement around the project died down and traders looked for better projects.
This is exactly what happened with Theta, a decentralized broadcasting platform that allows users to earn rewards by contributing their computing resources to the strength of the network.
The breakout of THETA token started on December 11, 2020 and grew by 2,468% from $0.621 to a new ATH of $15.9 on April 16, 2021 when Global 500 companies like Google and Sony Europe accepted the network’s validation program and Theta Labs was awarded a second patent on designs for decentralized blockchain-based data and video distribution.
Data from TradingView shows that THETA price has fallen to key support near $3.85 since hitting $5.98 on Dec 27 as the broader crypto market comes under pressure.
THETA/USDT daily frame price chart | Source: TradingView
Even when things go wrong, there are some reasons for theta holders to believe in the long-term uptrend.
Three reasons to remain optimistic for THETA in 2022 are the upcoming launch of the NFT marketplace ThetaDrop, the addition of new staking resources, and the focus on live streaming and games currently supported and integrated by notable partners.
ThetaDrop launches on February 1st
One of Theta’s biggest developments in 2022 will be the full launch of the ThetaDrop NFT marketplace. The plan to send the TDrop governance token to members of the Theta community begins on February 1st.
ThetaDrop has no plans to sell tokens and instead plans to release its stash of 20 billion tokens over a four-year period to community members who provide NFT liquidity or deploy THETA, TFUEL and TDRop on the network.
Tdrop release schedule | Source: Tdrop white paper
In addition to the upcoming ThetaDrop launch, several new projects have been launched on the network, including the OpenTheta NFT marketplace and the Voltswap DeFi platform, which supports Theta-based asset swaps.
Protocols such as Meter Passport and ThetaBridge also support asset connectivity between Theta and other Ethereum Virtual Machine (EVM) compatible networks.
Staking access is grantedimprove
Improved access to staking is another potential upside for Theta and its Gas token and TFUEL utility.
When the network was first launched, users had to deploy at least 10,000 THETA to run a depot node and help secure the network. Eventually, the required minimum was reduced to 1,000, but THETA price surged above $14 in early 2021, resulting in most holders failing to reach that threshold as well.
This has led to the creation of sites such as GPooL and more recently Thetaboard, which allow THETA and TFUEL holders to gain access to the stake for a small commission.
Thetaboard also launched its own NFT marketplace to serve the growing NFT ecosystem, which includes limited edition NFT collections published by celebrities such as Katy Perry.
????THE ROAR COLLECTION???? is now live @ThetaDrop! go 2 https://t.co/47eohxS34i to get your limited edition NFTs (1️⃣ of which is only available for 24 hours) & if you’re feeling brave you can bid on one of my BIGGEST show props ever! ????
Speaking of REAL BIG, stay tuned #PLAY NFTs pic.twitter.com/K7PxnxdhvK— KATY PERRY (@katyperry) December 15, 2021
Blockchain games and streaming video are still areas of growth
A third reason to be optimistic about the future of Theta is the protocol’s focus on promoting blockchain-based gaming and video streaming, as well as its current partnerships with Samsung and Sony.
Gaming is one of the disruptive areas of the crypto ecosystem in 2021, and this trend is likely to continue strongly into 2022 as blockchain technology continues to experience mass adoption.
Theta.tv interface users can earn rewards by watching videos from gaming community members such as League of Legends or The Witcher 3: Wild Hunt. Non-players can watch, contribute and earn by watching NASA or World Series of Poker channels.
The protocol also benefits from collaborations with many big names including Samsung, the Theta.tv application will be preloaded on the company’s smart TVs, allowing users to earn TFUEL rewards while watching their favorite shows. Theta also has partnerships with Google, Sony, and all three companies (including Samsung) to act as validation nodes for the network.
While the THETA basics look appealing, let’s see what the specs say.
THETA Technical Analysis
THETA has been trading inside a descending triangle pattern for the past few weeks. The 20-week exponential moving average at $5.64 is sloping down and the Relative Strength Index (RSI) is in negative territory.
Weekly frame THETA/USDT price chart | Source: TradingView
This suggests that the path of least resistance is to the downside. A bounce off the previous strong support at $3.85 was prevented by the 20-week EMA. Therefore, this is becoming an important resistance level to watch out for in the short term.
If THETA bounces off current levels but turns back down from the 20-week EMA, showing that the bears are selling on a minor bounce, it increases the likelihood of a dip below $3.85 and then a slide to 1, $46.
Contrary to this assumption, if the bulls propel the price above the 20-week EMA, it will be the first sign that the selling pressures may be easing. After that, THETA can rally to the 50-week simple moving average at $6.88 and eventually the downtrend line.
THETA/USDT daily frame price chart | Source: TradingView
THETA bounced off the $3.85 support on Jan 11th, showing the bulls are consolidating while the price is falling. The RSI has formed a positive divergence, which suggests that the selling pressure might be easing.
If the bulls propel the price above the 20-day EMA ($4.41), THETA can rally to the downtrend line. This level could act as a stiff resistance, but if the bulls break it THETA can rally to $5.94. A break and close above the 20-day EMA could complete a short-term double bottom with a target of $8.03.
Conversely, when the price turns down from the 20-day EMA or the downtrend line, it shows that sentiment remains negative and traders are selling on rallies. The bears will then attempt to pull and hold THETA below the $3.85-$3.85 support area, which will signal the start of an extended downtrend.
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