LayerZero [ZRO] Trading activity has slowed. ZRO is down by more than 11 percent in the last 24 hours. ZRO fell while Bitcoin and other major cryptos were booming [BTC]Ethereum [ETH]Ripple [XRP] Gained almost 2%.
LayerZero had been declining in spite of a daily rise in mindshare. Mindshare increased by 28%, with 3.46K interactions and mentions as a result of partnering with Near Protocol [NEAR]. What was the meaning of these bearish signs?
ZRO price prediction: Are traders bracing for more losses?
This was the main indicator. ZRO is now trading at lower levels since reaching the same peak as last October, which was $2.593. This occurred on February 11th.
ZRO broke through the range of sideways prices between $1.244 to $2.593 in October. This was followed by two retests of $1.244, which turned it from a support into resistance.
LayerZero is now trading towards the lowest price created during October’s cryptocurrency market crash. Buy orders dominate aggregate liquidations since February. This has led to long squeezes.
CVD also shows that the selling pressure has increased. As of the date of publication, there were more than 142,000 ZRO tokens in circulation.
This raises the possibility that the fall will extend to the $0.310 low on October 10. It appears that the structural scenario is more probable, particularly if the zone of $0.740 breaks.
ZRO’s price, on the other hand is consolidating with triple touches of the area. A fourth will soon follow. Why is ZRO likely to fail?
What is causing the steepest price drop?
Short liquidations are almost non-existent. The price fall was amplified by the fact that $512K in long positions were wiped out, compared with only $5.77K of short positions. This showed that bulls had lost by 10x to bears.
Leverage favored the shorts. According to CoinGlass’s data, the cumulative leverage of short liquidation was approximately $1 million in between $0.799-$0.885. In contrast, the long position totaled $378.5K in between $0.700 and 0.783.
The leveraged orders showed that bears were 3x more dominant than bulls.
There was also a looming pressure to sell from the token unlocks. LayerZero releases 25,71 million ZRO every 20th of each month. It was equal to 4.4% of the total supply which is 363,28 million ZRO.
ZRO is therefore still bearish, with $0.310 being the best demand area if the market conditions stay the same.
Final summary
- LayerZero’s price has fallen by 11% over the last 24 hours, as it continues to fall below important structural levels.
- ZRO is under pressure from long liquidations, token unlockings and short-order leveraged orders.
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Source: ambcrypto.com
