The Theta price bullish momentum has faded in the past few trading sessions. The THETA token is trading at $7.9063, which is about 140% above the lowest level in July. This has brought its total market capitalization to more than $7.9 billion.
Most of Theta price gains are attributed to the overall growth of the platform’s video platform. Recently, more developers have adopted the network to supercharge their video products.
Another reason why the coin’s price has jumped is the exponential growth of the non-fungible token (NFT) marketplace.
Analysts estimate that the industry surged by more than 2,100% in 2020 to more than $2 billion. This trend will grow in the coming months. On Monday, Visa, the $500 billion financial services company, announced that it had acquired an NFT for $150,000. Other companies will likely move into this industry.
NFTs are a major part of THETA’s ecosystem. The developers owns Theta Drop, an NFT marketplace that will enable people to buy and sell digital assets. This marketplace is currently in beta and will be launched fully in the coming months. Recently also, ONE Championship announced that it had partnered with Theta to launch its NFT marketplace.
Still, we can’t rule out the ongoing altcoin season as the reason why the coin’s price has been in a bullish trend. Besides, Theta has a strong brand name that is well-known by traders. Indeed, the overall volume of the coin that is traded every day has increased to more than $400k.
Theta price prediction
On the daily chart, we see that THETA formed a double-bottom pattern at $3.6905. The neckline of this pattern was at the resistance level at $10.63, which is slightly above the current level. At the same time, the coin has formed a small ascending channel that is shown in blue.
It has also formed what looks like an inverted head and shoulders pattern. The MACD and the Relative Strength Index (RSI) have been in a bullish trend. Therefore, the coin will likely maintain the bullish trend as bulls target the key resistance at $10.3. This view will be invalidated if the price pulls back to $6.50.