0x Protocol/Tether Market Overview for 2025-10-11

• ZRXUSDT opened at $0.2397, fell to $0.1852, and closed at $0.1984 with strong volume.
• A sharp sell-off followed by consolidation suggests bearish exhaustion at key support levels.
• RSI bottomed in oversold territory, while volume surged during the selloff, indicating potential reversal.
• Price remains below key moving averages, but Fibonacci retracements hint at a 61.8% rebound level.
• Volatility expanded during the selloff and has since compressed, suggesting a potential breakout.

Over the last 24 hours, ZRXUSDT traded between $0.2426 and $0.1852, opening at $0.2397 and closing at $0.1984. Total volume was 8,803,577, with a notional turnover of $1,745,241. Price action revealed a sharp decline into oversold RSI territory, followed by a partial rebound.

Structure & Formations

Price action showed a bearish breakdown with a low of $0.1852 acting as strong support. A large bearish engulfing pattern formed during the selloff, followed by a series of doji and indecision candles as the price rebounded. A potential bullish reversal is indicated at the 0.1852 level, where buying interest reentered.

Moving Averages

On the 15-minute chart, the 20-period and 50-period EMAs are both well below the current price, indicating a bearish bias. On the daily chart, the 50, 100, and 200-day SMAs all remain above the current price, reinforcing the longer-term downtrend. The price is currently forming a potential bullish crossover as it retests the 50-period EMA from below.

MACD & RSI

The RSI bottomed near 28, entering oversold territory and signaling a potential reversal. MACD remained bearish with a negative histogram throughout the selloff, but the histogram has flattened in recent 15-minute candles. Both indicators suggest that short-term momentum may be stabilizing as price consolidates.

Bollinger Bands

Volatility expanded significantly during the sell-off, with the bands stretching wide. Price found support near the lower band at $0.1852, and subsequent consolidation has pulled the price closer to the middle band. A breakout above the upper band would suggest a reversal, but remains unlikely without further confirmation.

Volume & Turnover

Volume spiked during the sharp decline, especially between 19:00 and 20:00 ET, with turnover reaching a peak of $68,492 at one point. This suggests significant distribution or panic selling. As price rebounded, volume decreased, indicating a lack of follow-through buying. The divergence between price and volume raises questions about the sustainability of the rebound.

Fibonacci Retracements

Fibonacci levels for the recent swing from $0.2426 to $0.1852 highlight key retracement levels. The 61.8% level at $0.2196 serves as a potential resistance target for a bullish rebound. Currently, price is consolidating near the 78.6% retracement at $0.2073, with the 50% level at $0.2139 providing the first test of conviction in the rebound.

Backtest Hypothesis

Applying a short-term reversal strategy based on RSI oversold conditions and volume divergence during the selloff could yield positive outcomes. A potential entry could be triggered on a close above the 15-minute 50-period EMA following a confirmed bullish reversal pattern like a hammer or doji at the 0.1852 level. A stop-loss below the 0.1852 support and a target at the 61.8% Fibonacci level at $0.2196 would define the risk-reward profile. This approach aligns with the observed exhaustion in the bearish move and the stabilizing momentum in the RSI and MACD.