Key Oasis Takeaways:
- YuzuSwap decentralized exchange brought Oasis 37% rise in market capitalization.
- Binance Labs, the company behind the largest crypto exchange Binance, invested in Oasis’ developer fund.
- Oasis’ in-house token ROSE rallied over 53%.
YEREVAN (CoinChapter.com) – YuzuSwap, the first decentralized exchange (DEX) on Oasis, launched on Jan 11, and the bulls met it with rapid uptake. The DEX almost tripled its total value locked (TVL) in 4 days and pushed Oasis up over 20 ranks in the list of cryptocurrencies by market cap, from #91 on Tuesday to #68 on Friday.
The DEX’s TVL rose over 43% in the previous 24 hours and took Oasis to a $180 million TVL. Furthermore, the Network built YuzuSwap using Emerald. The latter is a smart contract environment launched in Nov 2021 that is fully compatible with Ethereum Virtual Machine (EVM).
YuzuSwap uses a peer-to-peer automated market maker, which helps commence transactions at a lower cost. In addition, it supports token transfers between Etherem and six other blockchains in the Oasis Network and NFT asset transfers.
Also read: Bitcoin price rose above $44K as US inflation rate breaks 39-year record.
However, the newly-launched DEX wasn’t the only contributor to Oasis’ bullish week. Binance invested in Oasis Ecosystem Fund, the $200 million developer fund that started in 2021. The crypto giant joined the Fund’s other backers: Hashed, Jump Capital, Dragonfly Capital, etc.
As a result of fundamental developments, ROSE leaped over 50% week-to-date.
ROSE shows bearish technicals on the daily chart
The positive netflow wiped out the Network’s monthly losses, as ROSE soared 53% on Jan 10-12. The rally consolidated for the next two days, as the ROSE/USDT exchange rate stood at $0.51 in Friday’s Asian-Pacific session. However, the token established a new all-time high of $0.53 before sliding sideways.
Additionally, the digital asset formed an Ascending Channel in the daily chart. The latter entails two parallel trendlines that constrict the price action and prevent sharp moves in either direction. It has been instrumental in determining ROSE’s price vector since Sep 2021. Thus it could indicate a looming decline, considering the resistance retest on Jan 13.
Also read: Avalanche eyes bull run to $100 as AVAX jump nearly 19% in two days.
If the Channel remains relevant, ROSE could drop 30% to meet the support trendline. Moreover, the relative strength index (RSI) and trading volume divergences support the short-term bearish outlook.
In detail, divergences happen when an indicator deviates from the price action. While the latter was printing higher highs, the momentum indicator RSI and the trading volumes registered lower highs. The mentioned divergences could indicate the traders’ lowering expectations and result in a price decline.
However, if ROSE breaks out of the setup after the short accumulation, it could establish a new all-time high and continue the rally, possibly turning the Channel’s resistance into support.
