0x Protocol surged past its descending triangle top visible on the daily time frame, indicating that further gains are in the cards. Note that the chart pattern spans 0.5700 to around 2.0000, so the resulting uptrend could be of the same height.
In addition, price could also be gearing up to form a double bottom as it approaches the neckline around 1.2000, with an upside break adding confirmation that bulls are very much in control.
However, the 100 SMA is below the longer-term 200 SAM to indicate that the path of least resistance is to the downside. In other words, there’s still a chance that selling pressure could return and lead to a dip in 0x price.
Then again, price is moving past the 200 SMA dynamic resistance to signal that it could hold as support moving forward. Stochastic is also heading north so price might follow suit until overbought conditions are seen and the oscillator heads back down. RSI is already in the overbought territory but has yet to turn lower to signal a return in selling pressure.
Even so, 0x might find support at the broken triangle top and 100 SMA dynamic inflection point around 0.8000 where more buyers might be waiting to catch the rally at better prices.
The upside break in ZRX is being pinned on news of its Coinbase listing as it makes history as the first ERC-20 token on the platform. Earlier on, Coinbase already added support for 0x on its Pro version, leading many to speculate that a big move may be in order.
In its blog, Coinbase wrote:
ZRX will be available for customers in most jurisdictions, but will not initially be available for residents of the United Kingdom or the state of New York.
The company also created an informational page and a new section on the website for more details on 0x.
Images courtesy of TradingView.