LayerZero’s ZRO token has crashed 10% in 24 hours as bearish momentum accelerates across the crypto market. Technical analysis suggests the altcoin could drop to the $1.45 support level, while on-chain data reveals significant selling pressure from retail traders and a sharp decline in network transaction activity.
The altcoin market has experienced a severe downturn, with LayerZero leading losses. Its ZRO token registered a 10% price drop, extending weekly losses to 15%. This placed ZRO among the worst performers alongside Ripple (XRP) and ZCash (ZEC).
Technical charts show ZRO failed to hold above a key Fibonacci level, suggesting bears have controlled the market for months. The Moving Average Convergence Divergence indicator shows increasing momentum for further downside, pointing toward a potential retest of the 50% Fibonacci retracement level near $1.45.
On-chain activity corroborates the selling pressure. Data from Etherscan shows a flood of small sell orders on decentralized exchanges like Uniswap. Transaction activity on the LayerZero network has also plummeted dramatically over three weeks.
The number of transaction counts dropped over 70%, falling from 3,479 to 981. Similarly, the total transaction amount fell from 27.735 million ZRO to 8.137 million ZRO. This decline in network usage appears to be accelerating the price drop.
Analyst Benjamin Cowen has shared a bearish outlook for the broader market. “BTC goes down and drags the rest of the market with it,” he stated. He suggested this process could continue through much of the year.
