DDEX, a decentralized exchange using the 0x protocol, has decided to leave the protocol and fork the project into its own protocol which they have dubbed as Hydro.
While they have given credit where it is due by calling the Hydro protocol a fork of 0x, they have stated that they have rewritten a considerable amount of the codebase to suit their purpose.
Will Warren, co-founder and CEO of 0x, has taken to Medium to respond to the departure of DDEX. While he is disappointed that DDEX has chosen to leave 0x, he understands that an edge is required to get ahead of competition in the competitive decentralized exchange space.
Warren stated that still believes modularity and standardization amongst the decentralized exchanges will lead to much greater innovation in the space in the long term.
With DDEX creating their own protocol, this removes the aspect of community governance as the 0x coin was intended to help with the governance of the 0x protocol, giving the community the opportunity to vote on which direction the project should head toward.
Following this news, 0x team has announced a rebrand to their project. They have decided to drop the “project” and “protocol” from their name for a more cleaner brand image — they are now known simply as 0x.
The team has also recently launched a product known as Instant, which provides lightning-fast solutions for cryptocurrency purchases on the 0x protocol.
Let us continue to take a look at price action for 0x over the short term and highlight ant potential areas of support and resistance.
0x has seen a decent price hike totaling 6.76% over the past 24-hour trading period, bringing the current trading price to around $0.2927, at the time of writing.
The cryptocurrency has seen a 7-day price decline totaling 7.86% and a further 30-day price plummet totaling 47%.
0x is now ranked 32nd and currently retains a market cap value of $158 million. The 16-month old project is now trading at a price that is 87% lower than the all-time high price after a disastrous November 2018.
Much has changed since our last 0x price analysis as the ZRX/USD market traveled through the November 2018 market bloodbath. The start of the month saw price action at a high above $0.80, which then dropped to a low around $0.35 by the end of the month.
As December 2018 began to trade, price action for ZRX/USD fell eve lower until support was reached at the medium-term downside 1.414 FIbonacci Extension level (drawn in blue) priced at $0.2726.
As the market reached this area of support, price action rebounded to where it is currently trading at the $0.29 handle.
The market is still undoubtedly bearish at this moment in time. Even the recent price rebound hasn’t affected this bearish expectation.
If price action continues to break below the support at the $0.27 handle, we can expect price action to continue even lower.
For ZRX/USD to be considered bullish, we would need to see price action break above the $0.45 handle and continue to break above $0.50 to confirm that the trend direction has indeed changed.
If the sellers regroup and begin to push price action below the support at the $0.2726 handle, immediate support beneath can be located at the short-term downside 1.272 and 1.414 Fibonacci Extension levels (drawn in purple), priced at $0.2282 and $0.1996.
If the bears continue to drop price action below $0.19, we can then expect more support beneath to be located at the combined support provided by both the medium-term and the short-term downside 1.618 Fibonacci Extension levels (drawn in purple and blue), priced at the $0.1584 region.
If the buyers can push price action higher again and break above the resistance at the $0.30 handle, we can expect immediate higher resistance to be located at the previous medium-term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $0.35.
If the bulls climb higher above the psychological resistance at the $0.40 handle, more resistance toward the upside can then be expected at the bearish .236 and .382 Fibonacci Retracement level (drawn in red), priced at $0.43 and $0.52 respectively.
The RSI made an attempt to break above the 50 handle. However, it was unable to do so which indicates that the bears are still in control of the market momentum.
If we would like to see a positive break toward the upside, we would need to see the RSI climb back above the 50 handle.
DDEX leaving 0x should not have too much of a negative impact on 0x. The developers are still working hard to improve their protocol as they begin to increase the governance aspect of the project.
Despite today’s price increase, the 0x market is still in turmoil. If the sellers push price action below the $0.27 handle, we could expect ZRX/USD to head lower toward the $0.20 mark.
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