Market Overview for 0x Protocol/Tether (ZRXUSDT)

Summary• Price declined from 0.183 to 0.1789, with oversold RSI suggesting near-term bounce potential.
• Volume surged during the downtrend, confirming bearish momentum, but recent volume shows signs of weakening.
• Bollinger Bands show price at the lower band, while MACD histogram remains bearish, indicating consolidation ahead.

0x Protocol/Tether (ZRXUSDT) opened at 0.1802 on 2025-11-03 at 12:00 ET, reached a high of 0.1840, and a low of 0.1753, before closing at 0.1789 at 12:00 ET on 2025-11-04. Total volume was 12,279,094, while total turnover was approximately $2,165,620. Price has been consolidating below its 50-period moving average, with bearish momentum in place.

The 20- and 50-period moving averages on the 15-minute chart have crossed to the downside, suggesting continued bearish bias. Resistance is likely clustered between 0.1798 and 0.1802, while support appears to be forming around 0.1775. Several bearish candlestick patterns, such as hammers and engulfing candles, confirmed bearish continuation during the early session. A notable bullish engulfing pattern at the close of the 15-minute candle on 2025-11-04 at 12:00 ET may indicate some short-term reversal, but price remains below key moving averages and psychological levels.

Relative Strength Index (RSI) reached oversold territory near 30, suggesting a potential bounce from the lower band of the Bollinger Bands. However, the MACD histogram remains negative with the line below the signal line, indicating bearish momentum is still intact. A divergence between price and RSI suggests caution for continuation of the current trend. Price may retest the 0.1775–0.1778 range for confirmation of a possible reversal or continuation of the decline.

Fibonacci retracement levels on the 15-minute chart indicate that the 0.1775 level is aligned with the 61.8% retracement of the prior bullish swing, offering a key support level to watch. On the daily chart, the 0.176–0.178 range represents a critical area of previous congestion and may act as a pivot zone for the next few sessions. A move above 0.1802 could challenge the 0.1815–0.1825 resistance cluster, though the current bearish momentum makes this less likely in the short term.

The backtest hypothesis relies on the precise definition of signals for accurate execution. For the ZRXUSDT pair, we recommend using 4-hour candles for chart interval due to the balance between noise reduction and signal responsiveness. For the "MACD Top Divergence," we define it as a bearish divergence, where price makes a higher high while MACD makes a lower high. For the "sell at next swing low" logic, we define a swing low as a bar whose low is lower than the lows of the 3 bars before and after it, ensuring a clear bearish reversal signal.

Once the divergence is confirmed on the 4-hour chart, a short entry is triggered, with a stop-loss placed above the most recent higher high. The exit is triggered at the next identified swing low, defined as above. A full back-test will be run from 2022-01-01 to 2025-11-04 to evaluate the strategy's effectiveness under historical price action and volatility conditions.