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Theta Network Leads Crypto Rally With 60% Price Explosion: Here’s Why

Theta Network (THETA), a platform for decentralized video delivery and edge computing, has seen its price skyrocket by 60% in the past 24 hours. This surge has propelled THETA to become the top gainer across the entire spectrum of the top 100 cryptocurrencies.

The rally can be attributed to a confluence of factors, notably the anticipation surrounding the upcoming launch of Theta EdgeCloud in the next quarter, a broader crypto market uplift led by Bitcoin and a bullish chart setup for THETA.

EdgeCloud Launch Sparks Growth Catalyst

At the heart of Theta Network’s bullish trajectory is the Theta EdgeCloud project, an ambitious endeavor to establish a global peer-to-peer cloud computing network. This initiative is poised to harness the power of user devices to scale blockchain applications to new heights.

The excitement around this development was heightened by a tweet from Theta developers yesterday, which stated, “Theta EdgeCloud Phase 1 is coming in Q2! Check out the preview blog on how Theta EdgeCloud is ushering in a new era of AI computing.”

Theta’s foray into AI computing aligns with the current market enthusiasm for AI-related tokens, as evidenced by the impressive gains of projects like Render Network (RNDR) and Fetch.Ai (FET). This alignment suggests that Theta’s price surge is not only a result of its intrinsic value proposition but also its strategic positioning within the booming AI narrative in the crypto space.

In the newly released blog post, the Theta team elaborated on EdgeCloud’s mission to democratize access to GPU processing power for AI and video tasks, offering a cost-effective and decentralized alternative to traditional cloud computing. This initiative leverages the Theta Edge Network’s substantial distributed GPU computing power, which ranks among the world’s largest, to support a wide range of AI applications, from language models to text-to-image and text-to-video models.

The blog further elaborates on the technical prowess of the Theta Edge Network, highlighting its capacity to support a wide array of AI applications, thereby democratizing access to GPU processing power. “This vast processing power […] can deliver upwards of 2500 equivalent NVIDIA A100s, enough to train and serve some of the largest language models,” the post reads, illustrating the network’s potential to significantly impact the AI computing landscape.

Theta’s approach to innovation is also reflected in its patented technology for an edge computing platform supported by a blockchain network, enabling a new era of hybrid computing architectures. “This set in motion the capability to build a next generation hybrid computing architecture,” the team noted.

Technical Analysis Of THETA/USD

The Theta token (THETA/USD) has charted a significant bullish breakout on its 1-week timeframe chart. Over the past week, the price has surged with an impressive gain, reflecting a newfound vigor in the buying sentiment. However, the rally has reached a formidable resistance at $2.28 level, which acted as a crucial support in early 2022.

At press time, THETA was trading at approximately $2.01, after a massive move from its recent lows of around $0.55, representing an increase of over 365% in just 20 weeks. Before the breakout, the 100-week and 200-week exponential moving averages (EMAs) served as crucial resistance while the 20-week and 50-week EMAs marked strong support levels.

Theta price

The breakout above the 100- and 200-week EMA (blue line) can be seen as a major catalyst. Notably, the relative strength index (RSI) is currently positioned at approximately 62.6, which is comfortably below the overbought threshold of 70. This suggests that there may still be room for upward movement before the market is considered overextended.

This thesis is supported by the Fibonacci retracement levels, drawn from the all-time high to the significant low, which shows that the Theta price is still in somewhat bearish territory. It would take a further doubling of the price for THETA to reach the 0.236 level at $4.31911099, which can be seen as major resistance. However, for this to happen, the $2.28 resistance needs to be cleared.

A decisive weekly close above this level could pave the way for a test of the 0.382 level at $6.64707545, followed by the 0.5 and 0.618 levels at $8.5285097 and $10.41008649, respectively. Conversely, a rejection at the current level could see a retest of the 200-week EMA.

The volume indicator shows a modest increase in trading volume accompanying the recent price spike, which lends credence to the breakout. However, traders and investors will be closely monitoring this metric to confirm whether the momentum has the conviction to break through the current resistance zone.

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THETA Breaches $1 Level Courtesy Of Solid On-Chain Developments

Streaming services have become a big part of the modern society. Theta Network is building that kind of tech for the Web 3 space.

The network’s native token THETA has been going bullish in the past few weeks as a result of on-chain developments and the reversal of the sentiment on cryptocurrencies. 

According to CoinGecko, THETA rose 15% in the bi-weekly timeframe along with other altcoins. The network has been revving up development with the recent alpha release of EdgeStore, Theta Network’s decentralized storage solution.

Boosting The Network

In their January 20 blog post, the development team detailed how this new way of storing data can help the network and Web3 progress. 

The EdgeStore solution would be a decentralized way to store Web3 content. This will run on the Theta Edge Nodes which already has the ability to encode and transcode content.

The fear, uncertainty, and doubt surrounding the cryptocurrency market has not stopped the networks to grow with partnerships.

Trusted Media Brand, a Web3 entertainment firm, is now part of the growing list of Theta’s Enterprise Validator Nodes. 

The list includes tech industry giants like Samsung, Google, and Sony to name a few. This would accelerate the adoption of Web3 for entertainment services. 

$1 Reached – What’s Next For THETA?

As the time of writing, the token has breached the $1.02 resistance to hit its current price of $1.04. This drive towards $1 might have left the bulls exhausted as they pulled off the advance yesterday. Right now, THETA bulls are focused on consolidating gains.

If the bulls are successful in consolidating the coin, we might see an explosive upward pressure in the next couple of days. The token, with its high correlation with Bitcoin, would also be subject to the broader sway of the crypto market.

With BTC going into consolidation mode as well, THETA’s phase right now would be reliant if Bitcoin breaks upwards or downwards. 

Although the token still has a long way to go for it to recover pre-FTX levels, its steady momentum now will surely help investors and traders reach their goals. Analysts are also bullish for the future of the token. 

For now, investors and traders targeting $1.20 should focus on keeping the momentum steady and slow as consolidating gives the token some room for short and medium term gains.

With Bitcoin’s price movement also affecting the THETA market, monitoring how BTC moves in the next couple of weeks should also be a priority. 

Featured image by Currency.com

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THETA Shows Renewed Vigor – How Far Can The Coin Push Ahead?

THETA, the 51st ranked cryptocurrency in terms of market capitalization according to online tracker Coingecko, is performing relatively well now as it stays on the green zone as far its short-term and long-term price monitoring is concerned.

  • THETA is all green in the charts except for its year-to-date progress
  • The altcoin is sitting on a 17.2% 14-day increase
  • A test of the $1.2 resistance zone is likely to happen for THETA

At press time, the asset is trading at $1.16 and is up by 1.5% over the last day. On a weekly and biweekly timeframe, the crypto increased by 16.8% and 17.2%, respectively. Moreover, the past 30 days also saw the altcoin go up by 5.9%.

It is still enjoying some residual momentum from the rally that the crypto market did just few days ago but still has long ways to go if it hopes surpass or even to just get closer to its April 16, 2021 all-time high value of $15.72.

Nonetheless, THETA is still one of the better performers of the crypto space right now but interested buyers must first consider knowing even just a little of its price analysis before making the decision to accumulate.

Diving Into THETA Price Action

Over the last two months, the crypto market was filled with uncertainty and was also plagued by massive sell-off from different assets.

THETA managed to buckle down despite all of these and in doing so had placed its price in a falling wedge pattern as it was bullish but was eventually headed to an immediate correction.

Source: TradingView

During the last five days, the altcoin’s charts were filled with green candles as it went up by 15% on the way to testing the $1.2 marker.

Meanwhile, the asset’s Relative Strength Index (RSI) has entered the overbought zone, indicating the need to somehow put a stop to aggressive buying from traders in order to stabilize the price rally.

Moreover, during the recent crypto market rally, THETA price increased rapidly and, owing to its current pattern, needs to undergo correction before resuming its recovery and eventual upward movement.

Price Forecast for the Crypto Asset

As suggested earlier, the next few days will be painted in red for THETA as it is heading towards its impending price stabilization.

According to Coincodex, over the next five days, the asset will slightly decline to trade at $1.15. The sharp correction will happen within the next 30 days as it is likely to plummet all the way down to $0.58.

The token has 17 technical indicators that are giving off bearish signals and has settled in the Fear Region of the Fear and Greed Index.

Investors and prospective buyers, however, must remember that if THETA stays true to the nature of its pattern, it will try to bounce back and make a rally of its own after its price dump.

THETA market cap at $1.16 billion on the daily chart | Featured image from BlockchainReporter, Chart: TradingView.com

Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.