After facing rejection at $1.30 days ago, LayerZero has faced strong downward pressure. In fact, $ZRO dropped below the long-term moving average 200-day EMA, hitting a low of $1.04.
At press time, LayerZero was trading around $1.80, up 1.48% on the daily charts. Over the same period, the altcoin’s trading volume plunged 35% to $38 million.
Amid these losses, LayerZero [$ZRO] has underperformed all other major crypto assets. According to CMC data, $ZRO is the worst performing asset among top 100 tokens , plunging 13% on weekly charts.
Selini Capital deposits 2 million $ZRO worth $2.18 million
Interestingly, even with the market leaning to the downside, institutional investors have increased spending substantially. Nazoku reported that Selini Capital deposited 2 million $ZRO worth $2.18 million to Binance.
2d ago, Selini Capital received 2.1 million $ZRO from the multisig wallet 0x907. This multisig wallet had received 8.5 million $ZRO from LayerZero two years ago.
These deposits to exchanges could mean several things. Firstly, Nazoku observed that the deposit could mean that these tokens finished the lock up period and deposited to Binance to sell.
So far, the wall has deposited well over 4 million $ZRO to exchanges to sell and still holds another 4 million tokens.
Can LayerZero whales come to the rescue?
Interestingly, although LayerZero has seen some losses, traders on the spot are holding firmly. According to Coinglass data, Spot netflow has remained positive for four consecutive days.
Source: CoinGlass
At press time, Netflow was around -$203k, suggesting more $ZRO have left exchanges the past 24 hours. However, most of those buys came from whales.
In fact, Spot Average Order Size data from CryptoQuant showed big whale orders emerging between $1.1 and $1.0, making these price levels key whale zones.
Source: CryptoQuant
With the Spot netflow holding negative while whale orders are visible, it suggests these whales have been mostly accumulating. Historically, when whale demand holds steady, it has strengthened market structure, clearing a way for some gains.
Can $1 support hold?
$ZRO is currently facing intense bearish pressure. In fact, the altcoin’s Relative Strength Index (RSI) formed a bearish crossover and fell to 58.
While RSI made a bearish move, it still holds within bullish zone , suggesting that bears are yet to fully retake the market. If the pressure persist, the RSI will drop below 50, thus confirming this bearish trend.
Source: TradingView
Currently, LayerZero is testing the $1 support level, and trend continuation will see this level lost. In doing so, the altcoin will likely drop to EMA20 around $0.94.
To invalidate this bearish outlook, LayerZero must close above its long-term moving average around $1.2.
Final Summary
- Selini Capital deposited 2 million $ZRO worth $2.18 million to Binance.
- LayerZero dropped 13% on weekly charts becoming worst performing token among top 100 on CMC, as bears eye a drop below $1.