The Theta coin price saw a spectacular rise in the midst of the crypto market rebound. It broke above the $1.1 resistance level, giving the bulls a springboard to extend their bull run. Still, buyers who have been waiting may get another chance to buy as the altcoin gets closer to the $1.2 resistance.
However, it appears that THETA has increased too rapidly within a short time. With a 1.60% increase on the day and a seven-day chart representing a downhill trend in previous days, can we see Theta rebound to its previous highs this new month?
What To Know About Theta?
Theta Network is a blockchain-based, smart-contract-powered decentralized content distribution network with a high throughput capacity. The founders of Theta Network, Theta Lab, created it as a decentralized alternative to traditional video streaming services. These days, the industry is dominated by centralized streaming services like YouTube and Netflix.
Theta Lab’s goal is to compete with these established services by providing a decentralized environment with superior video quality and quicker connectivity. Additionally, they are concentrating on cryptocurrency-based gaming solutions. This requires sponsors, developers, users, marketers on the network, and content producers and consumers.
It originally debuted as an ERC-20 token. However, it launched its main net in 2019, and all ERC-20 tokens were swapped for THETA tokens at a 1:1 ratio. The network uses the power-saving Proof of Stake consensus mechanism. PoS requires token holders to stake some amount of THETA currency to participate as a validator. Indeed, it has the ability to alter the future steaming ecosystem.
THETHA’s price is currently trading at $1.167. | Source: THETHAUSD price chart from TradingView.com
What The Charts Say About Theta’s Struggles
THETA has been on the rise since finding support at about $0.904. However, the previous two daily candles have been red. Nonetheless, we believe now is an excellent moment to purchase for the short term. A further drop is possible, making now a better time to purchase for the near term.
A majority of technical indicators are bullish, pointing to a potentially favorable outlook. However, it might be a poor investment if you don’t purchase it at the support level. We recommend keeping an eye on it to buy when it is likely to take support or consolidate within a range.
Weekly THETA candlesticks are developing below the BB and consolidating between $1.2 and $0.8. Over the last two weeks, we’ve had two bullish candles, but this week we’re seeing a red candle, which indicates more consolidation over the next several weeks. A price in the lower part of the consolidation range is a great opportunity to buy for either the short or long term.
Price Of Theta In The Long Term
The Theta Relative Strength Index (RSI) has dropped recently and is now trading at 65.63. The asset has been trending toward the overbought zone but has seen some recent losses.
If the bulls can maintain the pace, they will shortly enter the overbought territory. But while the MACD and signal lines remain in the positive area of the daily chart, the green histograms have been growing in size.
Featured image from Pixabay and chart from TradingView.com