Oasis Network price could rally 15%, a possible do-over as rising momentum helps ROSE find support

• Oasis Network price has established support at $0.04186 amid rising momentum and growing investor sentiment.
• ROSE could make a 15% climb to test the supply zone at $0.05039 or break past the range highs around $0.05877.
• Invalidation of the bullish thesis would occur upon a decisive daily candlestick close below the initial support at $0.04186.

Oasis Network (ROSE) price had been in a steady downtrend since mid-August after breaking from a two-week consolidation. The slump came after US Securities and Exchange Commission (SEC) chair Gary Gensler alluded to the agency shifting focus toward AI tokens, causing a notable slump in related tokens like Injective (INJ), The Graph (GRT), and SingularityNET (AGIX).

Also Read: Fed censors Farmington State Bank for breaching operational terms following $11.5 million deal with FTX Group.

Oasis Network price could rally 15%, but there’s a catch

Oasis Network (ROSE) could be ready for recovery, if broader industry conditions allow, after securing support around the $0.04186 level. The defense line comes into play in alignment with a pattern with the Relative Strength Index (RSI). When the momentum indicator tested the indicated level, the ROSE price reacted with a significant uptick.

If history is enough to go by, therefore, and if bullish momentum grows, expect the value of the Oasis Network token to rise, breaking past the 50-day Exponential Moving Average (EMA) at $0.04842 to test the supply zone indicated in red by tagging the 100-day EMA at $0.05039. Such a move would constitute a 15% climb from the current level.

The supply zone, where traders are willing to sell aggressively once the balance shifts to the distribution side,  would be the likely turnaround point for the ROSE price because sellers populate this order block.

However, if this zone fails to hold as resistance, the Oasis Network token price could breach through, converting the order block to a bullish breaker, before tagging the 200-day EMA at $0.05446 or, in a highly bullish case, reach higher to confront the $0.05877 hurdle, where ROSE was rejected around June 4.

To support this outlook, the RSI has already tipped north after testing a multi-month low, resulting in a consolidation breakdown after stagnant volatility. The RSI is about to cross above the critical level, 30, to the north, thereby confirming Welles Wilder’s interpretation of a bullish confirmation. This means the market could be ripe for a pullback.

It is worth mentioning, however, that this outlook would be more robust and more sustainable if broader industry conditions ease because, as it stands, the market seems to be following news around Digital Currency Group’s (DCG) Genesis and FTX news. Should things ease, giving even Bitcoin (BTC) price a breather so that the flagship crypto can continue in its horizontal move or rally, at best, then the odds for ROSE’s 15% ascent would increase.

ROSE/USDT 1-day chart

Santiment data shows that social dominance for the Oasis Network has been on steady growth over the last month. This means there have been a lot of mentions for ROSE tokens across social media, relative to over 50 other tokens. This could bode well for the price.

ROSE Santiment: Social dominance metric

On the other hand, with the industry still bleeding in the wake of bearish news, the uptrend for the ROSE price could be postponed, with the Oasis Network token either moving horizontally or breaking below the $0.04186 level.

A decisive break below the current support would invalidate the bullish thesis, with a possible retest of the December 30 lows of $0.03370 or the zone just above it. Such a move would denote a 20% drop from current levels.

Notably, the red histograms of the Awesome Oscillator indicate the presence of bears in the market. This, coupled with the shaky RSI position below 50, makes a downward pull easy. 

---