LayerZero’s ZRO token has faced significant selling pressure, dropping over 8% to $1.83. The decline accelerated after Alameda Research sold its entire remaining holding of 7.93 million ZRO, valued at $15.3 million, to Wintermute. Despite the downturn, persistent negative exchange netflow indicates continued buyer activity, providing a potential market lifeline as the token tests key support levels.
The LayerZero (ZRO) token has experienced significant downward pressure, closing at lower lows after being rejected at $2.2 last week. At press time, ZRO traded at $1.83, down 8.42% on the daily charts with its market capitalization falling 7% to $575 million.
A major contributor to the strain was renewed selling from institutional players. After two months of dormancy, Alameda Research deposited 7.93 million ZRO worth $15.3 million to Wintermute, according to Lookonchain.
Usually, when the team offloads during a downtrend, it signals a lack of confidence in the market. With this latest sale, the team wallet has offloaded its entire LayerZero holdings.
Alameda Research has sold ZRO several times before, often near a local top. The token reacted aggressively to this latest disposal, dropping over 6% and accelerating its downward momentum.
Technical indicators reflect the bearish pressure, with ZRO’s Relative Strength Index dropping from 47 to 41. The altcoin also fell below its 50 and 100-day Exponential Moving Averages, confirming the trend’s strength.
ZRO is currently testing the $1.8 support level. If selling pressure intensifies and this level fails to hold, the altcoin could slide towards $1.4.
Despite the decline, buyers have remained largely active, as shown by exchange data. CoinGlass data showed Spot Netflow has remained negative for over 30 consecutive days, standing at -$609k at press time.
A sustained negative netflow suggests buyers have outpaced sellers on exchanges. This higher buyer presence reduces supply and can help stabilize prices, offering ZRO a lifeline.
If market demand is finally felt and sellers are exhausted below $2, ZRO could potentially rebound. Such a move would target a reclaim of the $2 level and then $2.2.
