0x Technical Analysis: (ZRX/BTC) Community Waits For Bithumb Listing To Spark New Bullish Support
Cryptovest
Published May 30, 2018 10:25AM ET
Updated May 30, 2018 12:01PM ET
0x Technical Analysis: (ZRX/BTC) Community Waits For Bithumb Listing To Spark New Bullish Support
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Excitement has been building behind 0x recently as Korean exchange, Bithumb, announces ZRX/KRW will be added to the platform. This is big news for all 0x holders, who will be anticipating a spike in ZRX’s price from this new Korean market exposure.
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At the time of writing, ZRX has recovered 6.56% of its losses from the recent BTC market decline and is holding well. No doubt the 0x community will be hodl’ing eagerly as they wait for bullish Bithumb traders to arrive. Let’s take a look at where this token’s heading.
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Over 1hr candles we can see that ZRX has been consolidating inside a bullish pennant throughout May, with a soft interior support/resistance line at 17,300 Sats.
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During the recent bear market, ZRX fell from the 0.618 fib level right down to the lower uptrending support of the triangle pattern, before bullishly retracing back to the same level off the back of this new announcement.
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After failing to overcome the downtrending resistance during the last bull run, we can now see the price action starting to correct back to the interior support line. With the rest of the crypto market starting to make strong comebacks, this small decline could be a result of impatient traders moving out of ZRX to capitalise on faster recovering assets.
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Momentum indicators over 15min candles confirm that ZRX is likely to rest along the interior support as selling pressure begins to outweigh bullish sentiment.
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- MACD has fallen to the signal line, with the faster MA dipping below the slower MA.
- RSI is also downtrending towards the lower channel area from a brief overbought moment.
- Williams R% is whipsawing along the oversold line, as short-term support remains inconsistent.
- The price action has also bearishly passed down through the ichimoku cloud, which typically indicates a downtrend.
Looking at the price action over the longer term (1hr candles), we can see bullish signals from the 22 and 50 EMA’s (yellow and blue respectively) crossing through the 200 EMA (red).
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There is also a more positive Ichimoku indication over longer candles, with a bullish T/K-Sen crossover and a high rising support kumo ahead of the price action.
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The ZRX market for now is still waiting on an explosive rally of South Korean investment that we’re all accustomed to seeing when a new token is listed and should hopefully find it soon, as it starts to hold around the 17,300 Sats support.
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/h2
We should expect the opening bull run in this prediction to take us off the support and break through the 0.618 fib level, towards 19,000 Sats. At this key price point area we could see some strong bearish opposition as short-term investors take profits and auto-sell orders are triggered.
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Breakouts from bullish pennants tend to ‘throwback’ towards the downtrending resistance and find support there during an opening correction. From here we would expect to see a second, stronger wave of support rally take the asset back up to the 0.5 fib level at 19,700 Sats, which has been a strong resistance in earlier ZRX runs this month.
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If it can break through this area, then a final price target will be around 21,000 Sats or the 0.382 fib level slightly further up at 21,200 Sats. This would deliver an overall ROI of 22.54% from the interior support level.
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This is likely to be an area where ZRX investor loyalty is tested, as the price action looms towards the all-time high price point. Panic selling could create problems for bullish supporters who will be looking to set new records and if Bitcoin’s price continues to recover, investors may choose to pull out of alt-coins into BTC instead.
This article appeared first on Cryptovest
Written By: Cryptovest
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