Key Takeaways:
- Oasis Network (ROSE) is in a downtrend after charting a new ATH, despite bullish fundamentals.
- The downside risks likely stem from traders looking to sell the news.
NEW DELHI (CoinChapter.com) — Oasis Network’s native token ROSE has enjoyed a steady uptrend since July 2021. The platform gained over 40% in Dec and is up nearly 18% in Jan. However, selloff risks abound, as it seems traders are likely to seek profits from ROSE’s recent record highs.
Meanwhile, ROSE’s price action is moving inside a rising wedge pattern. In detail, two converging trendlines joining higher highs and higher lows of an asset’s price movement form a rising wedge pattern. Moreover, the pattern often signals an imminent downside breakout.
The price pulled back from the upper trendline of the wedge pattern, suggesting ROSE could fall to the lower trendline, which would result in a pullback of nearly 30% from its current prices. As a result, the Oasis token could reach $0.35 before rebounding from the wedge’s lower trendline.
However, ROSE has immediate support near the $0.493 price level. If traders continue to sell, ROSE prices could reach $0.435, a support level just above the token’s 26-day EMA line. In addition, the Oasis token’s 50-day MA line lends support near the lower trendline of the wedge pattern.
Also Read: Oasis Network gains nearly 80% in ten days on the back of bullish fundamentals.
On the other hand, ROSE faces resistance near $0.57. Moreover, the Oasis token could reach a new ATH if it begins another uptrend, targeting a $0.63 resistance level.
ROSE Downtrend Risks
ROSE rallied nearly 101% after reacting to news of its FTX listing, indicating traders bought the hype leading up to the listing. However, once the Oasis token reached its ATH ($0.608), it began a downtrend that took 19.6% from its ATH price level, pushing it to Jan 17’s low of $0.49.
The Oasis token’s relative strength index pulled back after reaching overbought levels on Jan 14. An overbought RSI usually indicates a trend reversal in the works for an asset. RSI for ROSE is currently neutral, clocking 61.68 on the daily charts.
However, the Oasis token might succumb to the selling pressure coming from the confluence near-overbought RSI and profit-taking by retail traders.
Meanwhile, the momentum oscillator MACD is indicating strengthening bearishness in ROSE’s price momentum. The MACD histogram, which plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), is painting contracting bullish bars.
Also Read: Oasis Network (ROSE) price charts new ATH on back of ecosystem fund, Meta partnership.
Contracting positive bars indicate that bullish momentum is weakening for ROSE.
Oasis Network Listed On FTX
FTX, a crypto derivatives exchange, announced listing Oasis Network’s native token ROSE Perpetual Futures on its platform. The ROSE/PERP trading pair would start trading on Jan 17 at 14:00 (UTC).
Other fundamentals for the Oasis Network come from a series of successful projects on Emerald, the network’s EVM Compatible ParaTime providing a smart contract environment. In addition, the platform offers low-cost token swaps on Ethereum and supports NFTs and token asset transfers from other blockchains through Oasis Network.
For example, Yuzuswap, the first decentralized exchange on the Oasis Network, hit $100 million in Total Value Locked in the first 24 hours of its launch. The DEX currently has a TVL of $116 million.
ROSE was trading at $0.514, down 1.7% on the day at the time of writing.
