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0x (ZRX) Price: Increases by 17% on Coinbase Listing (Technical Analysis)

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From yesterday’s low at $0.657 the price of 0x protocol (ZRX) has increased by 17% to the current levels at $0.771.

0x ZRX Price Analysis

As you can see the price even went further up to the $0.837 and even spiked up above the 0.5 Fibonacci level but the sellers pushed the price below it fast and is currently in a corrective minor falling wedge pattern.

Click to Enlarge Chart

This pump happened as a result of Coinbase listing and making it accessible to Coinbase Pro users.

In today’s analysis, we are going to discuss the possibility of this event serving as a catalyst for a further increase in price for this cryptocurrency.

ZRX Price Analysis

Zooming out into the 4-hour chart we can see that the price action hasn’t escaped the ascending channel in which it has been correcting after a steep downfall from 12th of September.

Click to Enlarge Chart

The spike that was seen above the 0.5 Fibonacci level was a fakeout as it resulted in a price retracement faster than the candle closed, leaving a wick on the higher time frame. The price did escape the triangle’s resistance line which is the descending diagonal line on the above chart. This, however, isn’t the only time this happened which is why we cannot count on it to call out a breakout just yet.

Looking further onto the 4-hour chart you can see that my targets for the end of the correction are much lower than the current level. In my last 0x analysis I said that this current channel could be either a start of an uptrend as the last intermediate Y ended or this is the second X correction in a complex WXYXZ count.

Click to Enlarge Chart

As you can see I have counted 5 waves inside the channel which means that the upward impulse has ended. You can also now see that the price went above the triangles resistance line once more in the past but it resulted as a fakeout pushing the price significantly lower.

Zooming out to the daily chart you can see where do other significant levels originate. Before this correction inside of a triangle ends I am expecting interaction with the support zone from $0.397-0.344 which would be 49% lower from the current levels which is why I believe that this last down move will be a WXYXZ correction and this current ascending channel only a correction before another substantial and steady drop in price as the last wave Z should start to develop.

Click to Enlarge Chart

Further inspecting the channel into the 5 min chart you can see that after the impulse ended a correction is occurring – first abc is in the downward trajectory second is in the opposite direction and now another to the downside appeared to be an expanding flat, marking the end of a minor WXY.

Click to Enlarge Chart

I have projected the target for its completion to be below the A wave because B wave exceeds the range and if it is an expanding flat, C wave should do that as well. The line on which I have projected the target is a baseline support from the triangle seen on the daily chart and if the price want to go higher and escape the triangle than a retest of support would be a logical step.

After this minor correction ends we are going to see whether or not a breakout from the triangle is valid or not, but I believe that the price of 0x is heading lower in the mid-term.

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