It has been a very interesting night and morning for 0x holders. Owners of this particular token have noted some healthy gains, primarily because of the token making its way to the Coinbase exchange this week. That in itself has caused a lot of interest in 0xm, although it appears the big bull run in slowly coming to an end at this stage.
0x Price Tend Teeters a bit
It is quite interesting to see how token holders get excited over being listed on a particular exchange. While no one can deny the appeal Coinbase has in the market today, it is not the biggest development cryptocurrencies should be pursuing right now. Instead, it should be all about technical developments, rather than creating short-lived market hype.
Over the past 24 hours, the 0x price raised by over 18%. That is a pretty strong gain, especially because of the 20% leap over Bitcoin and Ethereum alike. As is usually the case in the cryptocurrency industry, trends like these cannot be sustained for the long run whatsoever. A correction is bound to occur sooner or later, and it seems some pressure is already forming.
The listing of 0x on Coinbase is the main reason for this sudden pump cycle. The announcement was made several days ago, yet it seems the integration has only been finalized a few hours ago. Coinbase now officially supports 0x through the website and the mobile applications alike. A positive development to increase the overall availability of the token, but that is all there is to it.
— Coinbase (@coinbase) October 16, 2018
Some traders already see the writing on the wall, as this pump cycle will not remain in place for too long. Patrick Rooney thinks 0x is losing its charm among traders, which is a natural turn of events. It is a matter of time until the price comes down a bit and this initial hype is shrugged off. Once things return to normal, the real 0x price action will begin.
— Patrick Rooney (@patrickrooney) October 17, 2018
A similar sentiment is echoed by Andy, whose technical analysis confirmed a pullback would occur sooner rather than later. It is very likely a dip to $0.75 might occur, which would effectively wipe out nearly all gains established to date. For now, it seems $0.85 will act as a key resistance level, although it can certainly be dumped through without too many real problems.
For those that do want to buy on a pullback, #zrx has respected the BBand 20MA and 0.5 fib
— BTCJeanRalphio (@btcjeanralphio) October 17, 2018
As is always the case in the cryptocurrency world, exchange listings cause a lot of hype. Many people tend to forget the real work begins once the initial excitement quiets down a bit. The big question is whether or not a Coinbase listing can improve the overall liquidity of this market, rather than create a temporary spike. The coming weeks will be crucial in this regard.