LONG $BINANCE:API3USD The Cold War of the Decentralized Oracles

Thoughts:

I'm keeping this very brief...

The current state of API3USD is very bullish. Aside from the hyped news around this asset (Launching Oracle Extractable Value OEV), this underdog LINKUSD killer is a disrupter to all Oracles in the Cryptoverse.

Folks, I believe we have been witnessing a cold war of the decentralized data oracles for over 2 years now... And soon the battle will be over -- The way I see it is that Chainlink conceeds and restructures their entire deliverable and converts to First Party, or API3 continues to be a virus to their business model.


First Party Oracle ( API3USD ) v. Third Party Oracle ( LINKUSD ), akin to the cold war of decentralized currency - Think BTC & USD.



Trade Setup:
1. This current chart API3USD is extremely bullish.
2. Bullish divergence has appeared on the 4HR chart.
3. 4HR chart LONG at $4.10

Short Term Target (1M):
1. $6.17, +$2.07, +50%
2. Open Postion: $28,700 (7K API3)
3. Risk Reward Ratio: 3/1



1. In particular we are looking for MACD bullish divergence to play out in combination with the 12 & 26 MA bull cross.
2. Short term price has pulled back and lost selling pressure to the downside and has formed a floor.
3. MACD reflects the negative bearish momentum to the downside and you can witness this by looking at the shortening of the red bar lines on the MACD oscillator (I indicated this on the chart with arrows).

It is important to note that although I will always be long term bull in this asset, I trade it from time to time. I sold API3 at $4.6, and this is my re-entry point. I hedged this sale by diversifying the total invested capital in ZRXUSD & MANAUSD (I will get into this in a later post).

Comment:

Oracle Extractable Value (OEV) is like a smart way for blockchain projects to keep more money in their own pocket, instead of losing it to middlemen. Imagine you're selling lemonade and find a way to cut down the cost of lemons and sugar without sacrificing quality. That's what OEV does but for blockchain and DeFi projects.

Normally, when blockchain apps need to know something from the outside world, like the current price of Ethereum, they ask an oracle. But this process can be wasteful and expensive. OEV is a new approach that updates this info only when absolutely necessary, making it cheaper and more accurate. Plus, it can make these updates smartly by auctioning the right to update the information, putting the money back into the app's ecosystem, instead of it going elsewhere.

So, for traders and investors, OEV means the projects they're putting money into could run more efficiently and potentially become more profitable, thanks to saving on costs and capturing value that used to slip through the cracks.

WorksCited: Burak Benligiray, Litepaper: "Oracle extractable value (OEV)", Nov. 2022.

Comment:

Hey guys, as you can see there was clearly some big sells (as shown in the wick down to $3.25) that sent the price down momentarily. I was not stopped out, and I never closed my trade. I still believe in this asset and am a long term holder. I'm merely sharing my trading style with those that are interested. If anyone was wondering my trade in API3 is still active, and I anticipate price increase to target very soon.

Trade active:

Trade Active.