Layerzero has experienced significant downward pressure since being rejected at $2.2 a week ago. The altcoin closed lower during the said period and reached a low of $1.8.
At press time, LayerZero (ZRO) It traded at $1.83 on daily charts, down 8.42%. During the same period, the altcoin’s market value decreased by 7% to $575 million.
Despite market weakness, institutional players continued to dump ZRO, further pushing the market.
Alameda Research scrapped ZRO 7.93 million
After a 2-month rest period, Alameda Research has resumed its LayerZero sales spree. Accordingly lookonchainAlameda Research invested ZRO 7.93 million in Wintermute, valuing it at $15.3 million.
With the latest sale, the team wallet was emptied of all LayerZero assets. Usually, when the team unloads during a downtrend, it is a sign of lack of confidence in the market.
Does it have any impact on ZRO?
Alameda Research in particular had sold ZRO several times before, selling near a local top almost every time.
For example, the last time the Alameda team sold these tokens, ZRO dropped from $2.10 to $1.50. However, this time it seems that the team later started to decline.
Following the recent sell-off, the token reacted aggressively, dropping over 6%. In fact, selling pressure accelerated the altcoin’s downward momentum.
Thus, the altcoin’s Relative Strength Index (RSI) dropped from 47 to 41 and moved deeper into the bearish zone.
At the same time, ZRO fell below the 50- and 100-day EMAs, further confirming the strength of the trend. Therefore, the downtrend is likely to strengthen if selling pressure continues, especially from large institutions.
Currently, ZRO is testing the $1.8 support; If the pressure intensifies and cannot hold, the altcoin could slide towards $1.4.
LayerZero Buyers still remain active in the market
Although LayerZero continued to decline, buyers remained largely active during this period. Foreign exchange activity further strengthened this market demand.
Coinglass data showed that Spot Netflow remained negative for 30 consecutive days. At the time the news was written, the Netflow of the altcoin was -609 thousand dollars.
Sustained negative net flows showed buyers outpacing sellers on exchanges. Traditionally, higher buyer availability reduced supply, increased scarcity and thus helped stabilize prices.
While demand has failed to keep up with the pressure so far, it does provide the altcoin with a lifeline and could offer significant support. If the market finally senses this demand and sellers break below $2, ZRO could recover and reclaim $2 and target $2.2.
Final Summary
- After two months of inactivity, Alameda Research bounced back and disposed of ZRO 7.93 million worth $15.3 million.
- LayerZero (ZRO) fell 8.42%, breaking the $2 support and falling as low as $1.83 amid increasing selling pressure.
