Trade Recommendation: ZRX

The 0x/Bitcoin (ZRX/BTC) pair started another bull run on April 17, 2018 when it took out resistance of 0.0001. This triggered the rounding bottom pattern on the daily chart. The breakout pushed the pair to as high as 0.000219 on May 10. ZRX/BTC sharply corrected from that point. The good news is that it appears that the corrective period is over.

Technical analysis show that 0x/Bitcoin has taken out resistance of 0.000155. This activated the small cup and handle continuation pattern on the daily chart. The breakout was validated by heavy volume and a strong rally to 0.00018629 on July 15. In addition, technical indicators look healthy. The MACD and the RSI are not flashing any bearish signal.

Furthermore, ZRX/BTC looks bullish long-term. It appears to be in a very wide ascending channel. So far, the pair has respected both support and resistance levels.

Lastly, the pair seems to be respecting support of 0.000155. ZRX/BTC dropped to as low as 0.00014816 but bulls were quick to respond and reclaim the support.

The strategy is to buy the dip as close to 0.000155 as possible. If ZRX/BTC manages to stay above this level, bulls are likely to inspire a rally to our target of 0.00022.

The process may take less than a month.

Daily Chart of 0x/Bitcoin on Binance

As of this writing, the ZRX/BTC pair is trading at 0.00015585 on Binance.

Summary of Strategy

Buy: As close to 0.000155 as possible.

Target: 0.00022

Stop: 0.00015

 

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.