The 0x (“zero x”, ZRX) protocol is trending heavily lately, and for good reason. This long-lived Ethereum-based token has been burning a hole in the charts, with over 150% gains since mid-September. We look at the charts to see if the rally can continue.
Like many altcoins, ZRX had been searching for a bottom for quite some time after a lengthy downtrend and then a flat consolidation. That brought about the conditions for a breakout, which began on September 17.
We see that 0x has reached its second thick zone of resistance during this uptrend, and we already see it being rejected. The RSI is well overbought, although its performance in general has been superb with hardly any bear divergence to speak of on the daily timeframe; and ditto the histogram, which almost achieved an even high on price peaks. Momentum here remains bullish and the trend up, even though ZRX is likely to see another pullback here.
If we come down to the 8-hour chart on the ZRX/BTC pairing, we see the scope of a possible retrace here. Drawing a Fibonacci retracement overlay from the most recent swing low in the uptrend, we find 3433 sats a likely candidate for a retrace target as it is confluent both with significant previous price action, and with the 0.618-65 “golden pocket” of the Fibonacci range.
We see very healthy indicators, with only a slight bear divergence on the RSI which will likely presage a small correction. The histogram doesn’t even have a bear divergence here, and buy volume even on the most recent price jump is even higher than previous jumps. The histogram is arching down, though, at the time of writing, again predicting a small retracement.
With altcoins like ChainLink (LINK) clearing the path for altcoins, and with Bitcoin dominance looking to be in a general decline, 0x has a good chance of continuing its bull rally for a little while longer. It might need some time to chew through this resistance and cool off a bit to set up for the next leg up, however, so we should expect some selling and profit-taking here.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
