The Theta price has bounced back after struggling for the past few days. THETA has jumped by more than 10% and is trading at $13, which is higher than this week’s low of $11.185. Its market capitalization is at $12.6 billion while its ranking among the biggest cryptocurrencies has dropped to 12. In the past few days, it has been overtaken by Bitcoin Cash, Chainlink, Litecoin, and Uniswap.
What is Theta?: Theta is one of the fastest-growing blockchain projects. Indeed, the Theta price has jumped by more than 550% this year alone and by more than 14,000% in the past 12 months. For starters, the Theta Network is a platform backed by Samsung and Sony that aims to disrupt the video-sharing industry.
It aims to make it easy for people to create and share videos using a decentralized network. Also, the network pays people to spare some of their bandwidth. In fact, it is a service similar to how torrenting sites work. The users are paid using the Theta token, which has a total supply cap of 1 billion. TFUEL, on the other hand, has a supply cap of 5.2 billion tokens and a 5% fixed inflation rate.
The daily chart below shows that the Theta price has been in consolidation mode in the past few days. This consolidation pattern resembles a bullish pennant pattern that is shown in green. It is also above the ascending trendline that is shown in blue. It is between the upper and middle lines of the Bollinger Bands. In technical analysis, a bullish pennant is usually a continuation pattern.
This means that the theta price may resume the bullish trend as investors target the next key resistance at $15, which is about 20% above the current level. However, a drop below the lower line of the pennant will invalidate this trend.
