Why Theta could be an extraordinary star in 2022

Why Theta could be an extraordinary star in 2022

The year 2021 was a rollercoaster ride for many projects in the cryptocurrency market, but as is the nature of cryptocurrencies, many tokens hit new all-time highs and then spent the following months going down as the hype surrounding the project faded. and operators were leaving for 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.

Theta token kicked off its run on December 11, 2020, when it surged 2,468% from a price of $0.621 to a new high of $15.90 on April 16, 2021, as Global 500 companies like Google and Sony Europe joined the network’s validator program, and Theta Labs was granted its second patent on designs for blockchain-based decentralized video and data delivery.

Data from Cointelegraph Markets Pro and TradingView shows that since reaching a high of $5.98 on Dec. 27, Theta price has fallen to its main support near $3.85 as the cryptocurrency market more Broad fell under pressure.

THETA/USDT 1-day chart. Source: TradingView

Even with the change of fate, Theta still has a handful of fundamental reasons for the long-term bullish headlines.

Three reasons to remain bullish on THETA in 2022 include the upcoming launch of the ThetaDrop non-fungible token (NFT) market, the addition of new staking resources, and the general focus on live streaming and gaming, which is currently backed by big-name partnerships and integrations.

ThetaDrop launches on February 1

One of the biggest news for Theta in 2022 will be the full launch of its ThetaDrop NFT marketplace. Plans to release TDrop governance tokens to members of the Theta community begin on February 1.

ThetaDrop has no plans for a token sale 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 THETA, TFUEL and TDRop staking. In the net.

Why Theta could be an extraordinary star in 2022
TDrop supply release schedule. Source: TDrop White Paper

In addition to the upcoming ThetaDrop launch, the network has also seen a handful of new projects launched on its blockchain, including the OpenTheta NFT marketplace and the Voltswap DeFi platform, which supports theta-based asset trading.

Protocols like Meter Passport and ThetaBridge also support asset bridging between Theta and other Ethereum Virtual Machine (EVM) compatible networks.

Improved access to staking

Improving access to staking is another potentially bullish factor for Theta and its TFUEL gas and utility 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. Over time, the required minimum was lowered to 1,000, but Theta’s price run above $14 in early 2021 meant that most token holders were also unable to reach this threshold.

This led to the creation of sites like GPooL and, more recently, Thetaboard, which gives THETA and TFUEL holders access to betting for a small commission.

Thetaboard has also launched its own NFT marketplace to service the growing NFT ecosystem, which includes limited edition NFT collections released by popular celebrities like Katy Perry.

Gaming and video streaming on blockchain continue to be growing sectors

A third reason to take a bullish 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.

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Gaming was one of the sectors to break into the cryptocurrency ecosystem in 2021 and that trend looks set to remain strong in 2022 as blockchain technology continues down the path of 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 by watching NASA channels or the World Series of Poker.

The protocol will also benefit from several big-name collaborations, such as a partnership with Samsung that will allow the Theta.tv app to be preloaded on the company’s smart TVs. This will allow users to receive TFUEL rewards for watching their favorite shows. Theta has also partnered with Google and Sony, with all three companies (including Samsung) serving as validator nodes for the network.

Although THETA’s fundamentals look attractive, let’s see what the charts project.

THETA/USD

Theta (THETA) has been trading inside a descending triangle pattern for the past few weeks. The 20-week exponential moving average ($5.64) has turned lower and the RSI is in negative territory.

Why Theta could be an extraordinary star in 2022
THETA/USDT weekly chart. Source: Tradingview

This suggests that the path of least resistance is to the downside. The previous bounce off the strong support at $3.85 has turned down from the 20-week EMA. Therefore, this becomes the key resistance to watch in the short term.

If the price bounces off the current level but turns back down from the 20-week EMA, it will indicate that the bears are selling every small breakout. That will increase the chance of a break below $3.85. If that happens, the THETA/USDT pair could drop to $1.46.

Conversely, if the bulls push the price above the 20-week EMA, it will be the first sign that the selling pressure might be easing. The pair could then rally to the 50-week SMA ($6.88) and then to the downtrend line.

Why Theta could be an extraordinary star in 2022
THETA/USDT daily chart. Source: TradingView

The pair bounced off the support at $3.85 on Jan 11, which indicates that the bulls are piling on the dips. The RSI has formed a positive divergence, which suggests that the selling pressure could be easing.

If the bulls push the price above the 20-day EMA ($4.41), the pair could rally to the downtrend line. This level can act as a stiff resistance, but if the bulls break above it the pair could rally to $5.94. If it breaks out and closes above this level, a short-term double bottom pattern could be completed. This setup has a pattern target of $8.03.

Conversely, if the price breaks away from the 20-day EMA or the downtrend line, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then try to pull and hold the pair below the $3.85-$3.50 support zone. If they succeed, it will be 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 trading move involves risk, you should do your own research when making a decision.

* THETA technical analysis provided by Rakesh Upadhyay