LayerZero (ZRO) has come under renewed selling pressure after failing to break above $1.30 several days ago. The token subsequently fell below its long-term 200-day exponential moving average (EMA), reaching a low of $1.04.
At press time, LayerZero was trading near $1.80, up 1.48% on the daily chart. However, its trading volume fell 35% over the same period to approximately $38 million.
LayerZero has underperformed other major crypto assets during the recent decline. CoinMarketCap data shows that ZRO was the worst-performing asset among the top 100 tokens, falling 13% over the past week.
Selini Capital Deposits 2 Million ZRO to Binance
Despite the broader market weakness, institutional activity around LayerZero has increased. Nazoku reported that Selini Capital deposited 2 million ZRO, worth approximately $2.18 million, to Binance.
Two days earlier, Selini Capital received 2.1 million ZRO from the multisig wallet 0x907. That wallet had previously received 8.5 million ZRO from LayerZero two years ago.
The exchange deposits could have several implications. Nazoku noted that the tokens may have completed their lock-up period before being transferred to Binance for a potential sale.
So far, the wallet has deposited more than 4 million ZRO to exchanges for sale and still holds another 4 million tokens.
Can LayerZero Whales Support the Price?
Although LayerZero has recorded significant losses, spot-market traders appear to be holding their positions. According to CoinGlass data, spot netflow remained positive for four consecutive days.
Source: CoinGlass
At press time, netflow stood near -$203,000, indicating that more ZRO had left exchanges over the previous 24 hours. However, whale activity accounted for much of the buying pressure.
Spot Average Order Size data from CryptoQuant showed large whale orders emerging between $1.10 and $1.00, making those levels important potential accumulation zones.
Source: CryptoQuant
Negative spot netflow combined with visible whale orders suggests that large investors may have been accumulating ZRO. Historically, sustained whale demand has helped strengthen market structure and create room for potential gains.
Can the $1 Support Level Hold?
LayerZero is facing intense bearish pressure. Its Relative Strength Index (RSI) has formed a bearish crossover and declined to 58.
Although the RSI has turned lower, it remains within the bullish zone, suggesting that bears have not yet fully regained control of the market. If selling pressure persists, the RSI could fall below 50, confirming a stronger bearish trend.
Source: TradingView
LayerZero is currently testing the $1 support level. A continuation of the downtrend could push the token below this level, potentially sending it toward the 20-day EMA near $0.94.
To invalidate this bearish outlook, LayerZero would need to close above its long-term moving average near $1.20.
Key Takeaways
- Selini Capital deposited 2 million ZRO, worth approximately $2.18 million, to Binance.
- LayerZero fell 13% over the past week, making it the worst-performing token among the top 100 assets tracked by CoinMarketCap.
- Whale activity has emerged between $1.10 and $1.00 as ZRO tests the critical $1 support level.
- A break below $1 could expose ZRO to the 20-day EMA near $0.94, while a close above $1.20 would weaken the bearish outlook.
