Key Takeaways:
- 0x partnered with Coinbase to power its NFT platform.
- Responding to the news, its native token ZRX jumped nearly 57% on Apr 20.
NEW DELHI (CoinChapter.com) — 0x, a DEX for Ethereum-based tokens, saw its native token ZRX explode nearly 57% between low ($0.703) to high ($1.1) levels on Apr 20.
ZRX likely benefitted from the hype surrounding the recent Coinbase NFT platform, which launched in beta mode on Wednesday. 0x protocol later announced that Coinbase has partnered with the platform to help power Coinbase’s NFT marketplace.
It seems Coinbase’s announcement forgot to include its partnership with 0x. Instead, the team focused on the new marketplace’s social elements. Coinbase probably leveraged 0x for the platform’s better gas efficiency.
ZRX token’s prices soared in response to the announcement, shooting past its 20-day moving average (red wave) and 200-day MA (green wave), moving above $1 for the first time since Dec 4, 2021. However, bears moved in to book profits, as the token dropped below $1 on Thursday.
Related: Coinbase unveils NFT marketplace to boost customers interaction.
If the downtrend continues, ZRX could test immediate support near $0.96, a price level that previously acted as resistance for the 0x token between Dec 4, 2021, and Jan 4, 2022. A sustained downside movement could see the ZRX price fall to $0.9.
Finally, the ZRX token has support from its 200-day MA (green wave) near $0.83.
A likely cause for the reversal might be ZRX’s overbought relative strength index. Traders often consider an overbought RSI a prelude to an upcoming trend reversal in bears’ favor. The 0x token’s Apr 20 rally pushed its RSI into overbought regions, and ZRX’s response was a textbook trend reversal.
At present, the ZRX token’s RSI is neutral with a value of 63.95 on the daily charts.
ZRX MACD Charts Bullish Crossover
Meanwhile, trend-based momentum indicator MACD charted a bullish crossover for the 0x token on Apr 20.
A bullish crossover occurs when the MACD line (difference of 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD). Traders usually consider the chart pattern as a buy signal, helping boost the asset’s prices.
If ZRX price continues to take cues from the Coinbase partnership news, the 0x token might move up to target resistance near $1.06, a price level that supported ZRX price action between Oct 30, 2021, and Dec 3, 2021.
After flipping immediate resistance, ZRX prices would likely target resistance near $1.13, a price level that rebuffed the 0x token’s upside movement between Sept 7, 2021, and Oct 26, 2021. Finally, ZRX could move to challenge resistance near $1.22, which it last reached on Dec 1, 2021.
Also Read: COTI turns bullish on the back of MultiDAG 2.0 and Djed stablecoin launch.
ZRX’s Apr 20 jump helped the 0x token chart a new 2022 high, but bulls would likely try to consolidate near $1 before trying to start an uptrend.
At the time of writing, ZRX was trading at $0.991, down 9.85% on the day.
