Zero X (0x) has seen a decent 5.06% price hike over the past 24 hours of trading. The cryptocurrency is currently trading hands around $0.8181 after the token has seen a further 17.14% price increase over the past 7 trading days.
Zero X is a protocol that allows ERC-20 tokens to be traded in a decentralised manner. It was founded in October 2016 by Will WArren and Amir Bandeali and was intended to provide an infrastructure so people can trade cryptocurrency without the need to travel through a centralised service such as Binacne.
Currently, the majority of cryptocurrency exchanges are taken place on large centralised cryptocurrency exchanges. Users must sign up to these exchanges and provide KYC (Know Your Customer) information to be able to conduct business on the platform. This already presents barriers to entry as financial information is already required which everyone in the world does not possess. Sometimes, such as during the great bull run experienced during December 2017/January 2018, the cryptocurrency exchanges may need to close their application process because of the increased demand which their infrastructure cannot handle.
To add further to the problems presented with centralised cryptocurrency we need to look no further than the MT Gox debacle when the largest cryptocurrency exchange in the world went insolvent in 2014 taking close to 1 million Bitcoins down with it. The problem is when you deposit cryptocurrency into a centralised cryptocurrency exchange you are essentially trusting the third party with your funds. You trust them to do their due diligence to keep their service secure and safe. However, this also makes them a target for hackers who attempt to steal their funds everyday due to the large number of coins in the hot wallets.
The zero X protocol allows for developers to come and create decentralised exchanges that users can use to exchange ERC-20 tokens in a trustless, decentralised way. It is important to highlight the fact that 0x does not make their own decentralised exchange and instead have provided an infrastructure for developers to make their own decentralised exchanges. Currently there are around 10 decentralised exchanges running on the 0x protocol including DDEX, Radar Relay and Paradex.
0x is currently ranked in 24th position in terms of overall market cap across the entire industry. It has a total market cap value totalling $439 million after the 12 month old coin loses 31% over the past 30 trading days.
Let us continue to analyse price action for 0x over the long term.
ZRX/USD – LONG TERM – DAILY CHART
Analysing price action from the long term perspective above, we can see that the market had experienced an incredible bullish run toward the end of 2017 when price action started from a low of $0.26 on the 29th of November 2017 and extended to an all time high of $2.72 on the 9th of January 2018. This was a price increase totalling 1420% from low to high.
After placing this all time high, the market proceeded to roll over and decline, initially finding support at the .5 Fibonacci Retracement priced at $1.44. This Fibonacci Retracement is measured from the entire bullish run outlined above.
Price action continued to decline throughout February 2018 until support was found at the .886 Fibonacci Retracement level priced at $0.45 in March 2018. This support proved to be significant as price action rebounded from this level aggressively. We can see that this level was the lowest that price action had traded at throughout the entire trading year of 2018.
Price action is currently trading just above support highlighted by the .786 Fibonacci Retracement priced at $0.70.
Let us continue to analyse price action a little closer over the short term to highlight any potential support and resistance zones.
ZRX/USD – SHORT TERM – DAILY CHART
Analysing the market from the benefit of a shorter time frame, we can see that the market had experienced a second wave of price increase when the market started from a low of $0.34 on the 18th of March 2018 and extended to an intermediary high priced at $2.05 on the 10th of May 2018. This was a price increase totalling 468% from low to high.
We can see that after placing the high, price action once again rolled over to fall. It had initially found support at the short term .618 Fibonacci Retracement level (drawn in red) priced at $1.04 during May 2018. However, the bearish pressure proved to be too heavy as price actioned continued to precipitously fall throughout June 2018 until support was found at the short term .886 Fibonacci Retracement level priced at $0.60. This price level provided ample support for the market as price action rebounded from this level.
Price action rebounded and underwent another short bullish run during July 2018 as price action continued to rise until reaching resistance at the short term .5 Fibonacci Retracement level priced at $1.24. The market fell further lower, once again, in August to find support at the short term .886 Fibonacci Retracement once again.
If the market continues with the recent bullish pressure we expect immediate resistance to be located at the 100 day moving average which is currently hovering just below the $1 handle. Further resistance above this level is expected at the short term .618 Fibonacci Retracement level (drawn in red) priced at $1.04 followed by the short term .5 Fibonacci Retracement level priced at $1.24.
Alternatively, if the bears mange to push price action below the support level at $0.77 we expect immediate support to be located at the short term .886 Fibonacci Retracement level priced at $0.60. If the bears overpower the market and push the market even further lower we expect significant support to be located at the long term .886 Fibonacci Retracement level (drawn in black) priced at $0.45.
The technical indicators within the market are starting to show signs that will favour the bulls as the RSI recently broke above the 50 handle. If the RSI can continue to remain above the 50 handle this will indicate that the bullish momentum is still in control and we can expect the market to continue to rise.