Market Overview for 0x Protocol/Tether (ZRXUSDT) on 2025-10-04

• Price dropped sharply after forming a bearish engulfing pattern at 0.2635.
• 24-hour low reached 0.2462, indicating a potential oversold condition near RSI 29.
• Volume surged near 0.2528, but price failed to hold, suggesting bearish divergence.
• Bollinger Bands widened during the decline, reflecting heightened volatility.
• Strong bearish momentum observed post-18:00 ET with high turnover during the breakdown.

24-Hour Price and Volume Summary

The ZRXUSDT pair opened at 0.2617 on 2025-10-03 at 12:00 ET and reached a high of 0.2674. It then dropped to a 24-hour low of 0.2462 before closing at 0.2473 at 12:00 ET on 2025-10-04. The total trading volume was 2,610,523, and the notional turnover came in at 634,097 USDT.

Structure & Formations

The price of ZRXUSDT displayed a strong bearish trend throughout the 24-hour period. A bearish engulfing pattern formed at 0.2635, confirming a shift in sentiment. This pattern was followed by a sharp decline to 0.2462. Key support levels emerged near 0.2513 and 0.2462, while 0.2635 and 0.2674 acted as resistance. A notable doji formed at 0.2523, indicating indecision and potential reversal.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages confirmed the downward trend, with price staying below both. On the daily chart, the 50- and 100-period moving averages also showed bearish alignment, reinforcing the longer-term downtrend.

MACD & RSI

The MACD histogram showed bearish divergence, with a negative crossover in the morning session. RSI fell to 29, signaling oversold conditions. While this may indicate a potential bounce, price failed to follow through. The RSI and MACD suggest further downside is likely unless a strong bullish reversal occurs.

Bollinger Bands

Volatility expanded significantly during the price drop, with the Bollinger Bands widening after the bearish breakout. Price spent most of the session below the lower band, confirming oversold conditions. A contraction in the bands near 0.2528 preceded the breakdown, indicating a potential short-term reversal attempt that ultimately failed.

Volume & Turnover

Volume spiked during the breakdown at 0.2528, with high turnover suggesting strong selling pressure. However, price failed to hold above this level, indicating bearish divergence. The largest volume spike occurred near 0.2547, but it did not translate into a bullish move, suggesting bears maintained control.

Fibonacci Retracements

Applying Fibonacci retracements to the recent 15-minute swing from 0.2674 to 0.2462, key levels at 0.2565 (38.2%) and 0.2516 (61.8%) were tested multiple times. Price stalled near both levels, indicating strong resistance. A break below 0.2462 could extend the Fibonacci sequence toward 0.2410, where the next support level may reside.

Backtest Hypothesis

A potential backtest strategy involves a short entry at the bearish engulfing pattern, confirmed by a break below the 0.2635 support level. A stop-loss could be placed above the 0.2645 resistance, with a take-profit at the 61.8% Fibonacci level at 0.2516. This setup aligns with the bearish divergence in RSI and MACD and is supported by volume spikes at key breakdown points. Given the strong bearish momentum and failed bullish attempts, this strategy could offer a favorable risk/reward ratio if executed near a key support level.