Sheldon McIntyre, CMT
Independent Analyst
- ZRX price advance driven by a significant spike in volume.
- 0x is at the top of today’s leaderboard with a 13% gain.
- The Relative Strength Index (RSI) confirms the price momentum over the last three days.
ZRX price has had some wild swings since February, and now it is beginning one to the upside.
0x is up 30% after a squeeze formation triggered on March 16, and the probability of advancing further is high.
ZRX price surge leaves the bearish thesis in the dust
Roadmaps for future price movements are better found on higher time frames by mixing indicators and volume. Some of those indicators combined with today’s stellar volume project a continuation of the 0x’s bull rally.
Despite the 47% downswing in February, the 50-day simple moving average (SMA) remained in an uptrend and provided support in mid-March just before the upward advance began.
Adding to the bullish 0x narrative was a sizable contraction in daily volume, indicating that the heavy selling was done in February.
It is frequently stated that price contraction leads to price expansion. In the case of ZRX price, it moved sideways in a tight range for 11 days, thereby pushing the Bollinger Bands into the Keltner Bands and forming the squeeze formation.
The breakout above the two bands today confirms a spike in volatility, which has generated a 30% gain in the past three days.
Today’s high came within $0.040 of the .618 Fibonacci retracement level at $1.780, but the notable resistance is at higher levels for ZRX price, including $1.89 and then the yearly high at $2.180.
Due to the force of the squeeze, it is fair to anticipate a test of $2.180 in the coming days, which would represent a 30% gain from the current price levels.
ZRX/USD daily chart
If the bears take control, ZRX price will first discover support at the convergence of the lower Bollinger and Keltner bands around $1.230. A failure to hold this hurdle will lead to a test of the February low at $1.357.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?