Range Abounds as 0x (ZRXUSD) Witnesses a Failure to Break Out of Double Bottom Pattern
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The double bottom pattern in the 0x market has experienced a failure to break out from the neckline. The market is seen to be trapped between key zones. The bears took control of the market and the price dropped below the resistance zone at 1.1700 on the 19th of May. The buyers rushed in to put a halt to the plunge in price. A support zone is seen in the market at 0.8300. The market has experienced a tussle between the buyers and sellers leading to short-term pump and dump in the price level.
Major Key Zones
Demand Zones: 0.8300, 1.6200
Supply Zones: 1.1700, 2.0900
ZRX has anticipated breakouts that have failed multiple times on the support and resistance level. Before the recent dive in price within the range, a double bottom was formed. The breakout anticipated was invalidated upon reaching the resistance zone. The market once again plunged to the support zone.
The stochastic chart shows the exhaustion of the sellers in the market. The bulls are about to gain control to propel the price to 1.1700.
What to Expect From 0x Breakout Failure
The current trend is shown on the Relative Strength Index. The market is below equilibrium which presents the rule of sellers in the market.
The Average Directional Index (ADX) shows the weakness of the overall sell trend witnessed in the market. The buyers, therefore, seem to regain control of the market once more.
The four-hour chart has posted a double bottom which is a bullish reversal pattern to skyrocket price to the next resistance level hanging at 1.1700.
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