Market Overview: 0x Protocol/Tether (ZRXUSDT) – 24-Hour Price Action and Momentum Insights

• 0x Protocol/Tether (ZRXUSDT) traded lower in a bearish morning before rallying into the afternoon and evening session
• Key support levels held at 0.1775, with a failed short-term bearish breakout near 0.1760
• Volatility increased after 20:00 ET, with a 0.18–0.1865 consolidation forming ahead of the final 4-hour surge
• Final 4-hour candle closed near the high of 0.1865, suggesting potential for further bullish continuation
• Notional turnover spiked significantly after 15:00 ET, confirming strength in the closing wave

ZRXUSDT opened at 0.1796 on October 30 at 12:00 ET and touched a low of 0.1759 before 19:00 ET. The pair closed at 0.1864 as of 12:00 ET on October 31, having rallied nearly 4%. Total volume reached 5.28 million ZRX, and notional turnover amounted to approximately $940,000, with strong buying pressure emerging in the final 4 hours.

The price structure over the past 24 hours shows a bearish morning consolidation followed by a sharp bullish afternoon/evening breakout. A key support level at 0.1775–0.1760 appears to have acted as a floor, with several candles forming near this area. A bullish engulfing pattern emerged in the 18:45–19:00 ET timeframe, followed by a series of higher highs and higher lows through the late night session. This suggests that buyers regained control after an initial bearish attempt.

Volatility expanded significantly in the final 6 hours, with candle wicks elongating on both bearish and bullish attempts. Price remained above the 20-period and 50-period moving averages on the 15-minute chart, indicating short-term bullish momentum. Bollinger Bands showed a recent contraction just before 16:00 ET, followed by a breakout to the upside. This suggests that the market was consolidating before a sharp move.

ZRXUSDT appears to be forming a potential bullish continuation pattern, with a clear 0.1775 support level and a 0.1865–0.1870 resistance zone now in focus. A break above 0.1865 could trigger further buying, while a retest of 0.1775 could confirm its resilience. Investors should monitor the 0.1840–0.1845 zone for potential entry points on a pullback. However, caution is warranted as momentum indicators may signal overbought conditions in the near term.

The RSI could offer insight into whether the recent bullish move is overextended or still has room to run. A reading above 70 would suggest overbought conditions, which may lead to a short-term pullback. However, given the strong volume and price action, an overbought RSI may be more indicative of bullish continuation than exhaustion.

Backtest Hypothesis

The suggested backtest strategy involves using RSI readings to trigger trades with 5% take-profit and stop-loss levels. Given the recent price action and volume confirmation, ZRXUSDT could have shown potential for a profitable strategy based on RSI overbought/oversold signals. For example, a long entry near 0.1775 on an RSI rebound from oversold levels (below 30) could have been followed by a 5% target at 0.1860–0.1870, aligning with recent breakouts. A short trade on an overbought RSI (above 70) may have occurred near 0.1850–0.1860, with a stop above 0.1870. Once RSI data is available, this strategy can be tested from 2022-01-01 to today to determine its viability.