Market Overview for 0x Protocol/Tether (ZRXUSDT) — 2025-09-26

• Price declined from 0.2334 to 0.2268 before stabilizing near 0.2290.
• Volume surged to 784,324 at 10:15 ET, confirming downward pressure.
• RSI approached oversold levels, suggesting potential near-term bounce.
• Bollinger Bands contracted during midday, signaling a possible breakout.
• A bearish engulfing pattern formed at 17:30 ET as part of a broader downtrend.

The ZRXUSDT pair opened at 0.2332 on 2025-09-25 at 12:00 ET and closed at 0.2302 at 12:00 ET on 2025-09-26. The 24-hour range was 0.2339 (high) to 0.2268 (low). Total volume reached 2,553,987, with notional turnover of approximately $605,104, reflecting uneven volatility and bearish momentum.

On the 15-minute chart, the price formed a key bearish engulfing pattern during the early afternoon ET window (17:30–17:45 ET), followed by a continuation of the downtrend. Support levels at 0.2275 and 0.2269 showed brief consolidation, while resistance reformed at 0.2291 and 0.2298, which were tested multiple times after the midday dip. The 20-period moving average (SMA20) hovered near 0.2293, slightly above the 50-period SMA, indicating a weak bearish bias on shorter timeframes.

RSI readings dropped below 30 in the early evening ET hours, hinting at potential oversold conditions and a possible pullback. The indicator did not show strong bearish divergence with price, but the MACD (12,26,9) crossed below the signal line with a bearish histogram, reinforcing the short-term downtrend. Bollinger Bands constricted between 0.2294 and 0.2287 between 02:00–04:00 ET, followed by a breakout to the downside at 07:00 ET. The price has spent the majority of the 24-hour period within the lower half of the bands, indicating subdued volatility and bearish dominance.

Fibonacci retracements drawn from the 0.2339 high to the 0.2268 low identified key levels at 0.2293 (38.2%), 0.2285 (50%), and 0.2275 (61.8%). Price tested the 38.2% and 50% levels multiple times, with the 61.8% acting as a firm support. The 15-minute intra-day moves also showed retracement tests around 0.2287 and 0.2295, suggesting short-term buyers may return if the 0.2275 support holds.

Backtest Hypothesis
The backtesting strategy focuses on capturing short-term mean reversion trades using the Bollinger Bands squeeze and RSI divergence. The setup would look for a Bollinger Band contraction below 1.5 standard deviations combined with RSI below 30. A long entry is triggered on a break above the upper band, with a stop-loss placed below the recent swing low. Given the recent contraction seen between 02:00–04:00 ET, a similar pattern forming on the next contraction could offer a viable entry for a potential rebound.