Oasis Network’s ROSE dumps 40% in just three days; Is it now a buy?

Oasis Network's ROSE dumps 40% in just three days; Is it now a buy?
“burning rose” by Adigan1 is licensed under CC BY-NC-ND 2.0

Key Oasis Network takeaways

  • Oasis Network’s native token ROSE corrected by more than 40% after topping out on January 7 at $0.37.
  • But the massive downside move has not deterred it from continuing its previous bull run.
  • Part of the reason is its partnership with API3, a Chainlink-like oracle service, to bring off-chain data to projects building on the Oasis Network.

YEREVAN (CoinChapter.com) — Oasis Network’s native asset ROSE reported heavy losses after its prices topped out at $0.37 on Tuesday.

The ROSE/USD exchange rate dropped up to 40% from the said record high as traders preferred to secure their profits instead of adding new upside positions. As a result, the pair fell to as low as $0.269 on Friday, raising worries about an extended downside correction in the sessions ahead.

ROSE/USD daily price chart
ROSE/USD daily price chart. Source: TradingView.com

Technically, the next profit target for bears appeared at $0.211. The level coincided with the 0.786-Fib line of the Fibonacci retracement graph, drawn from $0.256-swing high to $0.047-swing low. It was also instrumental in capping ROSE/USD’s rebound attempts during the March-April trading session, which raised traders’ prospects o test it as the next support.

Related: Oasis Foundation Partnering With Tidal To Implement DeFi Insurance Platform

Meanwhile, the Oasis Network token’s downside correction also surfaced to neutralize its overbought sentiments, as indicated by the classic relative strength index (RSI). At 70.71, the ROSE/USD’s RSI reading alerted marginal overvaluation, requiring an extended correction.

So is ROSE a buy? The technicals and fundamentals point to a yay.

Waiting for a crash

First, the ROSE/USD exchange rate seems to be heading towards $0.211 for a pullback or a breakdown. Earlier signals show that the pair’s bearish correction always leads the price towards the 20-day exponential moving average (20-day EMA; the green wave). There, bulls start accumulating ROSE tokens again against diminishing selling pressure.

As a result, the price rebounds towards new highs.

If the fractal repeats, ROSE/USD could fall towards $0.17, which coincides with the 0.618-Fib line. Nevertheless, bulls could utilize the newfound support as an opportunity to accumulate ROSE tokens again, thus leading the prices back towards $0.211—or perhaps, $0.256.

Oasis Network Fundamentals

The prospect of traders re-accumulating ROSE arises due to Oasis Network’s growth as a smart contracts platform.

While the project has fallen short of matching its top rivals Ethereum, Solana, Avalanche, and—by this September 12—Cardano, it is still a part of the portfolio of many crypto-focused hedge funds. They include Arrington XRP Capital, which manages $100 million worth of digital assets under its wing, Binance Labs, a San Francisco-based venture-capital branch of the Binance exchange, and Polychain Capital, another San Francisco-based investment firm.

Related: Polkadot’s DOT among top 5 held crypto-assets across hedge funds, research shows

ROSE serves as a multifaceted token in the Oasis ecosystem, with users using it to pay for transaction fees, staking, and delegation at Oasis Network’s Consensus Layer. In detail, the Oasis protocol expects to spend about two billion ROSE tokens as inflation rewards to stakers and delegators for contributing resources to the network.

Oasis Network ecosystem
Oasis Network ecosystem

The offerings are no different than what Oasis’s rivals propose. But given that Oasis developers focus on privacy-enabled smart contracts—unlike their competitors—the project attempts to offer a unique feature to its potential clientele.

Additionally, Oasis has lately entered a strategic partnership with API3, a Chainlink oracle service, to bring “off-chain data to projects” built on the Oasis Network. The duo will also co-sponsor a grant to develop and audit a rust version of Airnode, a Web3 middleware that connects any web API directly to any blockchain application.

ROSE rallied over 200% after the announcement.

Related: Bitcoin will get back on its feet soon enough, experts claim

Overall, the Oasis Network has enough fundamentals to back its next technical bounce. Meanwhile, a collective crypto market crash led by Bitcoin could dampen its upside narrative.

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