01 Jun 2020 #Theta Token
It is our firm conviction that Theta Token has the potential to become a star cryptocurrency in the near or mid-term future. The reason is simple: the ecosystem behind the ERC-20-compliant token is conceptually similar to YouTube, a globally popular video hosting service that has recently initiated a witch hunt on vloggers who educate about cryptocurrencies. Add to that the increasingly strict monetization policies which are more and more reminiscent of censorship.
The process of migration to the alternative platforms has already begun, and Theta Network, with its blockchain-enabled video delivery solution, will undoubtedly become a power player in this space.
It won’t happen overnight, of course, but the tendency will persist, and given that the team behind THETA seems dedicated to expand and improve the ecosystem, while the price action is full of vigor, the prospects of this cryptocurrency look bright.
Theta Token historical price action
Without further ado, let us suggest that it is one of the few coins from the top 50 (Theta Token is ranked 49th), which traders should consider for the long play. The chart above clearly shows that the price of this currency stopped existing within the context of a downtrend at the beginning of 2019 and has been consolidating in a tight range - the upper resistance of which was at $0.16 - up till the Black Thursday. Even though the coin fell to the all-time low at $0.039 on March 13, it bounced back swiftly, having recorded only one bearish week out of the last seven.
Last month was particularly fruitful for Theta Token as it gained an impressive 85%, more than the widely popularized Tezos, Ethereum, and even Bitcoin. Partly, it happened due to the approaching Bitcoin halving that serves as a stimulus for the entire market, but the main reason for such a massive spurt to the upside lies in the upcoming fundamental upgrade - the launch of the mainnet 2.0 and the introduction of Guardian nodes that will establish the new consensus mechanism for video streaming that consists of two layers.
The mainnet launch will take place on May 27. Needless to say that the halving and the mainnet launch combined should give Theta Token a strong push to the upside that could either help it reach the top of consolidation range at $0.27 or even provide enough fuel for the launch of the uptrend that would set a new all-time high - the present one stands at $0.31.
1-week THETA/USDT chart
But that is a long time away - presently, Theta Token is working its way out of the double trap that comes in the form of resistance lines of both minor and secondary downtrends. THETA has already penetrated both lines - and established the presence above the 50 EMA - but it is yet to confirm the move.
Those who are more aggressive could try and long the coin at this instant, but the disciplined approach would be to wait for the emergence of the bullish flag - the pole is already there - and then see as it resolves to the upside. The aggressive traders, though, could try and take some profit at the top of the pole, which should form in close proximity to the 0.5 level on Fibonacci. After the retracement, which could eat up approximately 12%, THETA should rally to the upside.
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