As the price of 0x fell below the August 14th low at $0.65 as is now trading at around $0.55 the price is starting to interact with the key support level off of the corrective triangle’s lower support line.
As you can see from the 0x/USD daily chart, price action has been stuck inside of the triangle from the start of the year when cryptocurrency market experienced an exponential increase and with it the price of 0x, reaching the all-time high at $2.72 at its peak. Measured from the all-time high to the levels 0x is currently trading the price has retraced by 80% which is little less than other cryptos that were covered in these analyses.
I have labeled my Elliott Wave count and as you can see, now I am expecting the completion of the second corrective structure as wave Y should end. In today’s analysis, we are going to further inspect that corrective structure in order to conclude how much the price can go lower before the correction ends.
Zooming into the 4-hour chart I have inspected the wave structure of the last WXY correction and labeled it as a minor degree wxyxz followed by a ‘connector’. Currently, we are seeing wave Y in development and judging by the Fibonacci retracement tool (wave X is exactly on the 0.5 mark) the correction is going to be a Zigzag which is why I believe that this support line is going to be broken and that the wave Y would end in the vicinity of the horizontal support zone around $0.39-$0.34.
As you can see this whole structure inside of the triangle is one big WXY correction with the first minor WXYXZ being the wave W, 5 wave impulse being the wave X and now this last intermediate WXY being the wave Y. If this is true, and the correction doesn’t get extended by two more waves then things are not looking good for the price of 0x. When projecting wave Y u usually measure wave W length and projected it from the X to get the target. When doing so both from the primary W or the last intermediate W wave the target for the ending of this correction looks much lower at the next horizontal support level around $0.17.
These projected lengths are even excluding the wicks and only measured by the wave ‘body’. If I include the wick then the target comes up with a negative value which is impossible.
Zooming into the hourly chart I have closer inspected and counted the sub waves of the last Y wave in order to conclude the minimal price value before it should end.
Again I have measured the length of the last W wave and projected the Y wave of the last minor correction, so the minimal target would be at $0.485. However, I believe that after the lower support line gets broken two more corrective waves will develop which will push the price lower as it would look for new support level, and the next is between $0.397 and $0.344.
That would leave this correction as an three wave WXY with wave X verified by the 0.5 Fibonacci retracement level.
Having in mind what was said at the beginning, this correction could get extended by two more waves which would push the price all the way down to the mentioned $0.17 level but we will see what happens when the price starts to interact with the horizontal support zone lines.