Trade Recommendation: 0x (ZRX)

ZRX 0x

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

ZRX chart
As of this writing, the ZRX/BTC pair is trading at 0.00002274 on Binance.

Summary of Strategy

Buy: As close to 0.00002 as possible.
Target: 0.000038
Stop: 0.0000192

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.