0x / USD Technical Analysis: Breaking Losing Streak
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- 0x is bullish in the short-term, with the cryptocurrency trading towards levels not seen since late January 2019
- The four-hour time frame shows a bullish inverted head and shoulders pattern
- The medium-term picture is also bullish after price broke from a falling wedge pattern on the daily time frame
0x / USD Short-term price analysis
0x has a bullish short-term outlook, with the cryptocurrency breaking from its established trading range and advancing towards an eight-week price high.
The four-hour time frame shows a bullish inverted head and shoulders pattern, with the current yearly trading high acting as a potential upside target for ZRX / USD bulls.
Traders should expect further short-term gains while price trades above the neckline of the inverted head and shoulders pattern on the four-hour time frame.
ZRX / USD H4 Chart (Source: TradingView)
Pattern Watch
If the advance reaches the January 24th trading high then an even larger inverted head and shoulders pattern will take shape.
Relative Strength Index
The RSI indicator remains bullish on the four-hour time frame, although the indicator is trading close to overbought territory.
MACD
The MACD indicator on the four-hour time frame is bullish and is currently generating a buy signal.
0x / USD Medium-term price analysis
0x is bullish in the medium-term, with the cryptocurrency continuing to advance above its 50-day moving average.
Since breaking out from the falling wedge pattern in late February, the daily time frame highlights that the ZRX / USD pair has been steadily rising.
Traders should note that the overall bullish objective of the falling wedge pattern is likely to be the December 24th trading high.
ZRX / USD Daily Chart (Source: TradingView)
Pattern Watch
If the falling wedge pattern reaches its bullish target, a large inverted head and shoulder pattern will start to take shape on the daily time frame.
Relative Strength Index
The RSI indicator on the daily time frame is currently generating a strong buy signal.
MACD Indicator
The MACD is also generating a buy signal, with the MACD signal line and histogram turning higher.
Conclusion
0x is turning increasingly bullish over both time horizons, with the cryptocurrency continuing to make a strong recovery from the worst levels of February.
Traders should watch for the potential formation of bullish patterns across the four-hour and daily time frames as it may signal further gains ahead for the 0x / USD pair.
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