0x (ZRX) breaks strong resistance after 165 days of consolidation
0x (ZRX) started an uptrend on October 27th that culminated in a break above a long-term consolidation zone. Therefore, it could increase significantly in the near future.
Long-term consolidation breakout
On October 30th, ZRX broke above the $ 1.18 horizontal resistance area. Apart from the deviation on September 5th (red circle), ZRX has been trading below this zone for 163 days.
After the outbreak, ZRX went back to validate this zone as support (green icon) and then rebounded.
Breakouts from such long-term consolidation usually result in a sustained upward move.
In addition, this possibility is supported by technical indicators.
The MACD, formed from the short and long-term moving averages (MA), is in positive territory and moving upwards. This means that the short-term trend is rising faster than the long-term trend.
The RSI, a momentum indicator, is above 50. This means that momentum is increasing. In addition, the indicator has created a potential bullish divergence, which is a strong sign that the trend is continuing.
So if ZRX continues to rise, the next resistance area will be at $ 2.05.
ZRX / USDT daily chart | Source: TradingView
Short term movement
The shorter-term two-hour chart shows that ZRX is trading within a symmetrical triangle. The triangle is considered a neutral pattern, which means that both an outbreak and an outbreak are equally likely.
However, the triangle forms after an upward movement. This makes a breakout more likely as the symmetrical triangle often acts as a continuation pattern.
Both the RSI and the MACD support the continuation of the uptrend. The RSI has just moved above 50 while the MACD is in positive territory and rising.
Therefore, a breakout across the triangle seems likely.
ZRX / USDT 6-hour chart | Source: TradingView
ZRX / BTC
Unlike the ZRX / USD pair, ZRX / BTC is not yet definitely bullish.
The token is still moving along a descending resistance line that has existed since early February and was last rejected by that line on October 31st.
While the RSI is above 50, the MACD has not yet moved into positive territory.
Therefore, the correction cannot be considered complete until ZRX crosses this line.
ZRX / BTC daily chart | Source: TradingView
You can see the coin prices Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto