Yes, thermistor can be used to measure temperature and update PDOs accordingly such that PDOs with required current values are advertised based on temperature reading.
Please refer to uint16_t app_otp_get_sys_temp(uint8_t port, uint8_t therm_id) function defined in fault_handlers.c file to read thermistor voltage through internal ADC. You can continuously monitor the thermistor reading and change the PDOs according to requirement. Any change in PDOs would require renegotiation of the entire contract with the sink device.
Thanks for the information.