- Theta Network token has held quite well in the past few days.
- The token has jumped by almost 30% from the lowest level in June.
Theta Network token has done well in the past few days even as Bitcoin remains in a consolidation phase. The token rose to a high of $0.7890, the highest level since July 5th. In all, it has jumped by more than 37% from the lowest level in June, giving it a market cap of more than $787 million.
Why is the Theta Network rising?
Theta Network is a unique blockchain network that seeks to disrupt the video and entertainment industry. It is powered by Theta Blockchain, a solution that was launched in December last year to provide infrastructure for the media industry.
Theta Metachain is described as an interconnected network of blockchains that allows permissionless horizontal scaling for the Theta Blockchain. These blockchains include the popular ones like Binance Smart Chain, Ethereum, and Avalanche.
Theta has a similar goal to Filecoin, a network that aims to move the world to a decentralized cloud infrastructure. Instead of relying on centralized video streaming platforms, it hopes that anyone with free storage can share their network and earn some money from it.
Theta is also in the non-fungible token (NFT) industry through its Theta Drop platform. While this platform was launched with a lot of hype, its market share has been a bit limited. Instead, the industry is currently dominated by the likes of OpenSea and Rarible.
It is not clear why Theta Network token has jumped in the past few days. Since there have been no major news, my assumption is that the token is just being pumped. A likely sign of this is that its volume has been a bit little during this time.
Data compiled by CoinGecko shows that the daily volume of Theta has averaged less than $10 million in the past few weeks. This is a small number for a coin valued at over $750 million.
Theta Token price forecast
The 4H chart shows that the Theta price has been in a bullish trend in the past few days. It has managed to move from a low of $0.700 on Wednesday to almost $0.80 today. The token is slowly approaching the upper side of the ascending channel shown in green.
Theta has moved above the 25-period and 50-period exponential moving averages (EMA) while the Relative Strength Index (RSI) has drifted upwards. Therefore, I suspect that the coin will pull back after rising to the upper side of the channel. If this happens, the next price to watch will be at $0.75.
