Why Did THETA Rally 17,892% In One Year?
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April 2, 2021 5:28 pm
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In the stock market, if you get a 50% return in a year you are a legend.
In crypto it’s not unusual to see gains well over 100%.
But 17,892%?
That’s reserved for the select few, and most recently it was THETA and its sister token TFUEL making those kind of gains.
Why NFT Token THETA Rallied 17,892% In One Year, Became Top 10 Crypto By Market Cap
<p>THETA, the native cryptocurrency of video-stream …https://t.co/xO5YqWcIhI
— Income Switch (@incomeswitch) March 23, 2021
From Yahoo Finance, here are more details about the monumental rise:
THETA, the native cryptocurrency of video-streaming blockchain network Theta, gained 14% in the past 24-hours, even as Bitcoin (CRYPTO: BTC) dropped over 6% down to $54,000.
What Happened: In the past week, THETA has returned over 51%, as most other cryptocurrencies recorded losses over 15% during the same period.
In fact, over the past year, the token has returned 17,892% and is now featured in the top ten cryptocurrencies by market cap.
The blockchain’s main business concept is to decentralize video streaming, data delivery, and edge computing with the aim of making it more cost-effective. Since its inception, it has been advised by Steven Chen, the co-founder of Google Inc’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Youtube, and Justin Kan, co-founder of Twitch.
The token’s recent surge in price amidst a slowing momentum in other NFT tokens may be the result of large holders influencing its price, according to Chinese journalist Colin Wu.
According to Wu, THETA’s top 10 holders control 61% of the coins circulating supply which may have influenced the coin’s recent price movement.
Wu also reports that THETA is “irrationally sought after” in South Korea, further evidenced by data from CoinMarketCap, which shows the THETA/KRW trading pair on South Korean crypto exchange Bithumb accounts for a large amount of trading volume.
Despite these controversial reports, the coin’s newfound standing as a top 10 cryptocurrency is not entirely driven by traders but also backed by the blockchain’s recent performance.
Even just this week, THETA continued to see a 44% jump:
Theta Token is up by an enormous 44% over this past week as it currently trades at around $12.35. The cryptocurrency had pushed higher from $8.00 at the start of the week as it surged. It managed to penetrate above $10 on Tuesday and continued to set a new ATH price at $14.94.
— Mayhem (@Mayhem247Ai) March 26, 2021
So where does it go from here?
InvestingCube published an interesting analysis on potential price predictions:
The Theta price has been in a strong upward trend lately. It is trading at $7.544, which is close to its all-time high of $8.05. It has risen by more than 9,000% from its lowest level in 2020 and by 300% this year alone. This spectacular rally has seen its total market value soaring to more than $7.5 billion. It is now the 15th biggest digital currency.
What is Theta? Introduced in 2018, Theta is a blockchain project that is focused on the video industry. It introduced a multi-level BFT consensus mechanism, an aggregated signature gossip scheme, and a resource-oriented micropayment pool.
In general, the project aims to shift the video streaming industry from the centralized model that companies like YouTube use to a decentralized model where people share bandwidth and redundant computing resources. They are rewarded with the Theta coin, which is the native currency for the platform.
The recent rally of Theta price is mostly because of the fear of missing out (FOMO), low interest rates, and the upcoming TFuel staking that will happen in April.Theta price prediction
The four-hour chart shows that the Theta price rose to an all-time high of $8.0 this month. In the past few days, however, the strong rally has waned and the price has formed what seems like a triple-top pattern whose neckline is at $6.18. As you will find in our free trading course, this pattern is usually a bearish signal.
Therefore, in my view, we might see a pullback in the near term. This will be confirmed when the price drops below the neckline at $6.18. However, a break above the resistance at $8.00 will invalidate this bearish thesis. It will send a signal that there are still more buyers out there.
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