Coinbase just listed the ZRX aka 0X token on its platform, making it available for trading directly against the USD, EUR, GBP, as well as against BTC.
It has been the case that whenever a coin gets listed on a major exchange like coinbase, we can expect a sudden surge, followed by a strong pullback. Usually price will come right back to where it was before the listing.
Still, you will see these surges because people believe they can outsmart, or out-execute other traders, who are thinking the same thing.
ZRX/USD or 0X/USD 1H Chart
It should be noted that before ZRX was listed on Coinbase, it broke below a range and was heading back towards the lows from earlier in the month.
But the crypto token was listed on the popular platform, price surged from $0.66 to $0.90 before retreating sharply back to around $0.76 all within 24 hours.
If we just look at price action and put no context to this rally and pullback, we might want to anticipate support above $0.70.
However, because this is a special kind of pump, the type that usually is followed by a sharp dump, I would not rely on the $0.70 level for support outside of a near-term reaction.
Looking at the daily chart, we can see that ZRX/USD has gone through a mania stage along with the rest of the crypto market back in late 2017 and early 2018.
Since then, the bubble has been deflating and shows no sign of percolating yet.
The descending triangle reflects a period of consolidation, but also reflects some bearish bias as price makes lower highs.
Because of the prevailing bearish bias, I am more convinced that price will dump back below the $0.70.
There is a pivot around $0.60 as well, but I would prepare for a dip to the $0.33-$0.45 area before looking for any strong buying.
ZRX/USD or 0X/USD Daily Chart