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.
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.