Key Takeaways:
- THETA price spiked over 18% since Sept. 21.
- The rally was likely the result of Theta Labs securing a new patent.
- The token is moving inside a bullish technical setup.
NEW DELHI (CoinChapter.com) — Decentralized video streaming platform Theta announced it had secured a patent for its “Edge Computing Platform supported by Smart Contract-enabled Blockchain Network.”
Theta Labs announced in a blog post it had received the U.S. Patent 11,763,332 for the technology. The patent application lists the platform’s founders, Jieyi Long and Mitchell C. Liu, as the inventors of the new technology.
The technology combines “an edge compute network with the security of smart contracts and the instant settlement of crypto transactions,” according to the blog post.
Developers stated that though Edge Nodes already support decentralized streaming and encoding, the new technology will expand its uses to general compute use cases like generative AI, smart grids, etc.
Furthermore, the Theta Edge Network would enhance the platform’s scalability and resource availability. Additionally, the update introduces plug-and-play capabilities on the network.
THETA Price Moving Inside Bullish Pattern
The Theta Labs token price has formed a bullish technical pattern called the ‘Falling Wedge.’
The technical pattern forms when the price fluctuates inside a pair of falling trendlines that converge down the slope. The outcome of such downside patterns is typically a price breakout to the upside. One key feature of the pattern is that volumes usually decline as the trendlines converge.
The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines. Thus, confirming the pattern could help THETA price rally 125% to reach a theoretical price target near $1.44.
THETA Price Rally Faces Bearish Pressure
Meanwhile, the Theta Labs token price faced bearish pressure after spiking 15% on Sept 23, forcing the token to pare gains. It seems bears are aggressively defending the 100-day EMA (blue wave) resistance near $0.71.
However, breaking and consolidating above the immediate resistance might help THETA price target the resistance near $0.81 before downside corrections pare gains.
On the other hand, if the selling pressure increases, THETA price might drop to the support level near $0.57. Failure of the immediate support level could see the token’s price test the support near $0.47.
The RSI for the token remained neutral, with a score of 55.76 on the daily charts.
