ZRX Completing Wave 2 Correction? (0x Weekly Forecast)
(February 20, 2020 7:30 PM EST)
ZRX’s recent bearish weekly candle is of course negative, though as it nears a typical Fibonacci retracement level, we are looking for signs of support and a bounce from there. If ZRX can find support around the 50 Week EMA and bounce higher — or simply trade sideways, then we may have a higher low which points to higher prices — even if we have to grind there.
As you can see in the weekly chart above, I have plotted a rough Elliott Wave Impulsive 5 wave count for ZRX/BTC based on price action to date. Accordingly, you can see that — assuming ZRX finds support relatively soon to complete a W2 correction, ZRX will then be set up to rally to higher highs, officially breaking the multi-year downtrend and grinding higher to previous highs not seen since 2017–2018. If the early February 0.00005 ZRX/BTC or ~$2.30 USD rally was our W1 and we’re soon to complete a W2, then we’re currently in an excellent accumulation zone to load up on more ZRX at value prices as we prepare for the notoriously face-melting impulsive Wave 3 to commence.
Wave 3s are typically the longest and most intense waves and based on recent price action, can more than triple ZRX’s price from here even before the final W5 rally. Altcoins have a tendency to go parabolic and even increase in orders of magnitude during late-stage bull market phases, so it would not be unreasonable for ZRX to even exceed these projections, especially if the 0x network continues to grow and see adoption as DeFi grows itself.
0x (ZRX) is one of the most legitimate and rapidly-growing DeFi projects and provides a tremendous amount of value to DEXs and AMMs alike, providing tight spreads and cheaper fees than that of even Uniswap, not to mention 0x singlehandedly built Matcha which is 100% powered by 0x’s protocol. If there’s one DeFi project with a valid usecase, increasing market growth, and tremendous upside, it’s 0x, which makes its ZRX token so promising.
Altcoins have been susceptible to similar exponential pumps as of late as money rotates out of large-cap cryptos during sideways consolidation periods (however brief) and new money enters the space that is already outpriced from larger-caps, leaving them to choose from a wide selection of alts. Alts also sometimes benefit from rallies of large-caps like Bitcoin and Ethereum that cause altcoins to rise with the tide, though this is mostly a phenomenon that occurs during bull markets, which we’re currently in. In all, I believe ZRX to be tremendous value at these levels and expect it to be among one of the most prominent (if not the most sexy) DeFi projects and usecases as the world genuinely becomes exposed to DeFi for the first time and it starts to enter their lives.
From my perspective, which is predicated heavily on fundamental and technical data as shared with all of you, all signs indicate it’s probably wise to buy ZRX or earn ZRX now before prices continue to ascend in dramatic throughout the rest of 2021 and further.
Look for immediate support around 0.000025 which is roughly the 50 Week EMA; this needs to hold. Below that, the uptrend is in trouble.
Immediate-term resistance is at the 200 Week EMA roughly around 0.00031, then 0.00004. If ZRX can break above the recent local top around 0.000055, that would form a higher high and then we can look for higher prices in a more defined uptrend.
Originally published at https://www.publish0x.com.