I was watching the ZRX weekly chart and noticed a very obvious bullish bat pattern. The bullish bat pattern signals a reversal to the upside. In addition to the harmonic pattern, ZRX just finished a beautiful 9 count downtrend according to the Tom de Mark Sequential. It states that trends tend to exhaust on a count of 9 and tend to reverse 1 to 4 counts until further indication of a reversal. For this week to finish on a green 4, ZRX has to close above ~9250 sats in the coming days. This will increase the probability of a bullish trend to retest the high of week 3 made by the announcement of Coinbase listing ZRX and the general probability of a count of 9 retesting old all time highs.
Further bullish indications:
- MACD is about to get a golden cross above the 0 value.
- RSI just moved out of the oversold zone.
- Blue arrows indicate the increasingly higher lows.
- Green dashed line indicates a volume increase since the last bull run. Says to me “accumulation” / smart money buying at an average lower price than previous bull run.
Zooming in on the daily chart, I found a very interesting pattern. Marked by the green zones which were bullish days for ZRX we can see a repeating pattern across 3 different things:
- Bull run for ZRX.
- Double top in the overbought zone in RSI.
- MACD crosses from negative to positive.
In between these green zones ZRX would do the following:
- ZRX would enter a falling wedge.
- RSI drops to below 50 on average and visits the oversold zone at least twice.
- MACD drops back from positive to negative.
Based on this observation, I’d say that ZRX is headed for another falling wedge before going up again. RSI and MACD will range in the assigned boxes for a while.
Zooming in for more details. Pulling up an Trend-Based Fibonacci Extension from previous uptrend ‘s low and high to the most recent low, we can see where the current uptrend might be headed for. The most notable point is the red circle where the price of ZRX hit the 50% extension after the Coinbase listing announcement. In the most recent green zone you can also see the price bounce between the Fibonacci lines. RSI is currently also in a downtrend seen.
Ultimately, in accordance to the higher time frame bullishness, I’d like to see the price start a new Elliot Impulse Wave with the red circle as a nice first leg (1), retrace into a falling wedge (2), reach point C of the harmonic pattern (3), retrace to the marked point (4) and finish the 5 point Elliot Wave by hitting the old ATH of point (A) of the harmonic pattern. This is all hypothesis and this scenario is still highly unlikely, only up to point 2 is most probable. We will have to reanalyze after having found a point 2.