Trade Recommendation: 0x (ZRX)
The 0x/Bitcoin (ZRX/BTC) pair is a market that looks ready to carve a short-term bottom. If it does, it will have the chance to finally put an end to its year-long crypto winter. On May 10, 2018, 0x printed an all-time high of 0.000219. From that point, the cryptocurrency went into a downward spiral that saw its value crash to 0.00002034 on July 15, 2019. That’s a massive devaluation of over 90 percent in 14 months.
Nevertheless, bulls have the chance to step in and stop the bleeding now. After all, 0x appears to have completed its market cycle.
Technical analysis shows that ZRX/BTC is respecting its historical support of 0.00002. We have this view because the market quickly rejected lower prices after touching the support on July 15th.
Furthermore, the cryptocurrency is printing a bullish divergence on the daily RSI. This is a trend reversal signal as it indicates that momentum is shifting to the side of the bulls. Also, the market is flashing oversold signs in both the daily and weekly timeframes. Thus, we expect sellers to back off in the coming days because 0x is undervalued. The possible decrease in supply will give bulls the opportunity to drive the price up.
The strategy is to buy as close to 0.00002 as possible. If ZRX/BTC manages to stay above this level, bulls are likely to inspire a rally to our target of 0.000038.
The process may take less than a month.
Daily Chart of 0x/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00002 as possible.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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