The Theta price has bounced in the past few trading sessions as the rest of the cryptocurrencies bounce back. THETA is trading at $7.06, which is 83% above the lowest level last week. This recovery has boosted its total market capitalization to more than $7 billion, making it the 22nd biggest cryptocurrency in the world.
The background: Theta is a leading blockchain platform that is attempting to decentralize the video business. The goal is to transition the world from the current model of centralized video storage to one where it is controlled by the community. Its goal is not to replace Vimeo and YouTube. Instead, it is to simplify their business model by having global users share their free storage. These users are then rewarded using FIL, which is the native token for the ecosystem.
Like all cryptocurrencies, Theta price declined sharply last week as investors continued to worry about interest rates and regulations. This trend has eased a bit. Indeed, the rest of cryptocurrencies have bounced back while technology stocks that are more sensitive to interest rates have surged. So, what next for Theta?
Theta price forecast
On the four-hour chart, we see that Theta has bounced back after it crashed last week. It has managed to move above the 25-day and 15-day exponential moving averages. It has also crossed the 78.6% retracement level at $6.34 and is approaching the 61.8% retracement at $8.31. The currency has also formed what looks like an inverted head and shoulders pattern.
Therefore, there is a possibility that the price will continue rising as bulls target the next key resistance at $9.70. On the flip side, a drop below the 78.6% retracement at $6.34 will invalidate this trend.