Oracle Niche is in expansion and Dia Data might be the best positioned project to profit!

Oracle Niche is in expansion and Dia Data might be the best positioned project to profit!

By gixolas | Crypto for Dummies | 12 Oct 2022


I believe that the oracle space is one of the most overlooked and underrated crypto niches out there. 

The high demand for its services/DATA feeds are really high, and its price have been on a long term downtrend across the oracle board from larger to smaller caps.

ChainLink have been working to the broader oracle space as some sort of Bitcoin for the broader crypto market. Upcoming implementations such as LINK's staking and its partnership with SWIFT will probably bring a bullish momentum to the oracle niche.

The correlation is clear on the chart below. (Use the Log scale for proper visualization)

I believe DIA is the best pick on the oracle space for a few fundamental and technical reasons.


Fundamental Analysis


On the fundamental side, I believe that DIA is extremely well positioned to outperform not only LINK, but the broader crypto space because of how much oracles are undervalued on a macro crypto scale, but also because it's a small cap with just over $32 million dollar market cap (today's date).

DIA, standing for Decentralised Information Asset, is a multi chain open-source oracle platform that collects, processes and deliver trustable data on and off chain, able to cater to a broad spectrum of clients/Apps. 

DIA Data feeds are fully transparent, meaning that they are fully verifiable from DATA collection to its delivery, the only oracle protocol that ensures this happens, which I believe is the biggest edge over its oracle peers.

Being a relatively small cap as it's market cap suggests, DIA is widely present on multiple chains collecting and delivering DATA and impressively scores really high on multiple social scoring metrics on multiple chains, which raises an important point: DIA has very high visibility and brand awareness which reflects a strong community, which tends to partially offset downturns and be extremely explosive on the upside moves, which will brings use to the next point.

 

Technical Analysis

DIA price action might be getting to a critical point, as the chart on the tweet below suggests.

Long term descending resistance showcases a clear downtrend for DIA which meets a 5-month ascending support with plenty of retests as pointed with the yellow arrows. With the same sort of time frame, there's also a horizontal support with decent relevance.

The latest, in no more than 2 weeks DIA price action will have to break out of this triangle.

If the price breaks down it's uncharted territory which is though to quantify, but I believe is an extremely unlikely scenario unless global macro factors come into play such as war escalation or very high interest rates hike.

When it comes to breaking up, there are some interesting levels worth exploring:
- the $0.425 level, which I'd say that's the bare minimum to be reached, marking the most recent local top
- the $0.50 level which goes back to the previous local top, an important psychological level and a previous support and resistance with considered importance
- the $0.75 level and the $0.867 level are options but not with as much relevance as the following $1 level
- the $1 level besides being a great psychological level, have also been an important support in the past, which also coincided with the top of the triangle making it an interesting target

 

Conclusion

I believe that the oracle niche offers extremely high value for the price paid, in which DIA stands out among its oracle peers due to its transparency edge over its peers and with very interesting metrics explored above.

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Crypto for Dummies
Crypto for Dummies

I have been around in the Crypto World for about 3 years now, and I really understand how the early days could be scary and overwhelming. This said, I would like to share my experiences good or bad with you and make the life easier to the newcomers! Please note I still have a lot to learn myself and I am here for the share of ideas/experiences as well!

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