{"id":133848,"date":"2020-05-18T20:00:22","date_gmt":"2020-05-18T19:00:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=133848"},"modified":"2026-10-28T19:19:41","modified_gmt":"2026-10-28T19:19:41","slug":"beware-this-altcoins-price-action-could-be-part-of-a-pump-and-dump-scheme","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/beware-this-altcoins-price-action-could-be-part-of-a-pump-and-dump-scheme\/","title":{"rendered":"Beware: this altcoin&#8217;s price action could be part of a pump and dump scheme"},"content":{"rendered":"<p>0x has been in the spotlight of the cryptocurrency market following an increase in the buying pressure behind it that saw its price rise over 140 percent. The bullish momentum appears to have been fueled by an endorsement made by a prominent figure in the cryptocurrency industry.<\/p>\n<p>Now that ZRX has reached new yearly highs, there are several on-chain metrics that suggest it could lose some of the gains recently made.<\/p>\n<h2>Signs of a pump and dump scheme behind 0x<\/h2>\n<p>Teeka Tiwari is well known in the crypto community for his bold predictions about the future market valuation of many digital assets. Through his Palm Beach Confidential Group, the analyst has made a series of <a href=\"https:\/\/cryptoslate.com\/this-ai-focused-cryptocurrency-is-up-300-but-on-chain-fundamentals-spell-trouble\/\">recommendations<\/a> that tend to be followed by massive spikes in a token\u2019s price.<\/p>\n<p>On May 7, for instance, Tiwari <a href=\"https:\/\/twitter.com\/rahulqq\/status\/1258205102503915520?s=20\">included<\/a> 0x in his \u201c2020 Phenomenon Play\u201d tokens. After the announcement was made, this altcoin jumped from a low of $0.21 to hit a high of nearly $0.50. Such a high market valuation for ZRX has not been seen since mid-November 2018.<\/p>\n<figure style=\"width: 2696px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.tradingview.com\/x\/DW4hFhXa\/\" alt=\"0x US dollar price chart\" width=\"2696\" height=\"1572\" \/><figcaption class=\"wp-caption-text\">ZRX\/USD on <a href=\"https:\/\/www.tradingview.com\/chart\/ZRXUSD\/\">TradingView<\/a><\/figcaption><\/figure>\n<p>The upward impulse, however, was not followed by a higher spike in demand. This resulted in a steep retracement as it usually happens with \u201call the sudden pumps driven purely by speculators,\u201d <a href=\"https:\/\/insights.santiment.net\/read\/zrx---signs-of-top-and-accumulation...if-you-knew-where-to-look-5794\">affirmed<\/a> <a href=\"https:\/\/cryptoslate.com\/coins\/santiment\/\">Santiment<\/a>. As a result, 0x retraced over 25 percent from the recent peak and it may be bound for further losses.<\/p>\n<p>The behavioral analytics platform said that the daily active addresses and network growth that ZRX has experienced over the past few days do not sustain the recent price increase. These indexes saw a sharp drop while this cryptocurrency was surging indicating that \u201cthere are not enough participants to keep the momentum going.\u201d<\/p>\n<figure id=\"attachment_133851\" aria-describedby=\"caption-attachment-133851\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-133851 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-1024x395.png\" alt=\"0x Daily Active Addresses and Network Growth by Santiment\" width=\"1024\" height=\"395\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-1024x395.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-300x116.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-768x296.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-1536x592.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.43.29-2048x789.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-133851\" class=\"wp-caption-text\">0x Daily Active Addresses and Network Growth by <a href=\"https:\/\/cryptoslate.com\/coins\/santiment\/\">Santiment<\/a><\/figcaption><\/figure>\n<p>Moreover, the high number of mentions of 0x across more than 1,000 social network channels tends to indicate that a correction is underway. Since the wisdom of the crowd is usually inaccurate, the overwhelmingly bullish sentiment around ZRX might be signaling a top.<\/p>\n<p>Santiment explained:<\/p>\n<blockquote><p>\u201cThe more the chatter around a coin during a rally, the more toppish it gets as the crowd floods in late as usual. A similar pattern [can be spotted] around social volume and price action since ZRX's genesis in 2017. Every significant top was signaled by a sudden spike and drop in social volume.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_133850\" aria-describedby=\"caption-attachment-133850\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-133850 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-1024x391.png\" alt=\"0x Social Volume by Santiment\" width=\"1024\" height=\"391\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-1024x391.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-300x115.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-768x293.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-1536x587.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-18.52.27-2048x782.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-133850\" class=\"wp-caption-text\">0x Social Volume by <a href=\"https:\/\/cryptoslate.com\/coins\/santiment\/\">Santiment<\/a><\/figcaption><\/figure>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/sentora\/\">IntoTheBlock\u2019s<\/a> \u201cIn\/Out of the Money Around Price\u201d model adds credence to the bearish outlook. This on-chain metric reveals that over 2,000 addresses bought more than 40 million ZRX at an average price of $0.38. Such a substantial supply wall could spell trouble for this token\u2019s uptrend.<\/p>\n<figure id=\"attachment_133849\" aria-describedby=\"caption-attachment-133849\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-133849 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-1024x368.png\" alt=\"In\/Out of the Money Around Price by IntoTheBlock\" width=\"1024\" height=\"368\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-1024x368.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-300x108.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-768x276.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-1536x551.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-18-at-19.00.44-2048x735.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-133849\" class=\"wp-caption-text\">In\/Out of the Money Around Price by <a href=\"https:\/\/cryptoslate.com\/companies\/sentora\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p>It is worth noting that the unpredictability of the market makes it impossible to avoid the bullish outlook. Even though ZRX\u2019s recent price action could be part of a pump and dump scheme, breaking above the resistance level mentioned earlier could see it rise towards higher highs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>0x has been in the spotlight of the cryptocurrency market following an increase in the buying pressure behind it that saw its price rise over 140 percent. The bullish momentum appears to have been fueled by an endorsement made by a prominent figure in the cryptocurrency industry. Now that ZRX has reached new yearly highs, [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":133863,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Beware: this altcoin&#039;s price action could be part of a pump and dump scheme<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/beware-this-altcoins-price-action-could-be-part-of-a-pump-and-dump-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beware: this altcoin&#039;s price action could be part of a pump and dump scheme\" \/>\n<meta property=\"og:description\" content=\"0x has been in the spotlight of the cryptocurrency market following an increase in the buying pressure behind it that saw its price rise over 140 percent. 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