0X Price Analysis – 4th March 2021

The 0x (ZRX) market cap currently stands at US$1.05 billion with US$225 million in trade volume over the past 24 hours. ZRX is ranked 69th on the Brave New Coin market cap table. The ZRX price is up 9% in the last 24 hours, and up 114% in the last month.

About 0X

0x (ZRX) is an ERC-20 token designed to power various forms of decentralized exchange (DEX). The ZRX protocol was founded by an engineer and self-proclaimed U.C.S.D. Ph.D. dropout, Will Warren, and a former fixed-income trader, Amir Bandeali. Neither had significant technical work experience before starting the project. Bandeali previously worked for a leading Over-The-Counter cryptocurrency trading platform, DRW. Notable project advisors include Joey Krug, co-CIO at Pantera Capital and founder of Augur, as well as three Coinbase alums; Fred Ehrsam, co-founder of Coinbase, Linda Xie, co-founder of Scalar Capital and Will Warren’s wife, and Olaf Carlson-Wee, founder of PolyChain Capital. The rise of the DEX is, in part, a response to the more than US$1.5 billion lost by centralized exchanges in the form of hacks, malfeasance, or incompetence over the past 11 years. As opposed to a centralized exchange, which requires assets to be deposited in exchange wallets, a DEX user maintains custody of their assets. This key difference removes the centralized honeypot for hackers.

Technical Analysis

Roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pivot Points, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

Watch full ZRX Coin Technical Analysis on YouTube

On the ZRX/USD daily chart, the 50-day and 200-day Exponential Moving Averages (EMAs) have been bullishly crossed since early January 2021. Both the 50-day EMA, at US$1.18, and 200-day EMA, at $0.70, should now act as support. Very little volume support (horizontal bars) exists until the US$0.50 zone, additional volume support sits in the US$0.34 zone.

Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

Daily Cloud metrics, with doubled settings (20/60/120/30) for more accurate signals, are currently bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span is above Cloud and above price. The trend will remain bullish as long as the spot price is above the Cloud. Kijun support currently sits at US$1.25.

Both the ZRX/BTC and ZRX/ETH pairs are sitting above the 200-day EMA for the first time since Q3 2020. Both pairs also sit within extreme volume resistance, suggestive of continued range-bound trading in the near-term. The ZRX/BTC pair may see further bullish continuation after a break above the 4,000 sat resistance. The ZRX/ETH pair is unlikely to see bullish continuation until a break of 0.0018 ETH.