The Theta price is in a relentless rally as investors cheer the growing non-fungible tokens (NFT) sector and the rising popularity of the network. THETA is trading at $11.15, which is 484% above where it started the year at. Its market cap has surged to more than $11.6 billion, making it the tenth-biggest cryptocurrency in the world. This is remarkable since the currency was not in the top 40 when the year started.
What happened: Theta is a blockchain project that is in the online video industry. The project helps people watch videos and then earn rewards from it. Also, users can earn by sharing their bandwidth and storage to the network. In the past few months, more people have been using the network, which has helped push the tfuel prices to a substantial high.
Meanwhile, the network has become associated with the fast-growing NFT industry. Still, we cannot rule out the Fear of Missing Out (FOMO) as being a catalyst for the recent rally of the Theta price.
In my last article on Theta, I warned that a short-term reversal was likely. Obviously, as shown below, this prediction has not worked out since the price has surged to an all-time high of $13.72. On the four-hour chart, the uptrend is being supported by the 50-day and 25-day exponential moving averages (EMAs). It has also moved above the ascending channel.
Therefore, while the upward trend could keep continuing, in my view, I believe that the rally has been overstretched. This means that there is a possibility that some bulls will start taking profit, which could push the price to the upper side of the channel at $9.68, which is 13% below the current level. On the flip side, a climb above the all-time high of $13.70 will invalidate this trend.
