LayerZero has faced significant downward pressure in recent trading, with ZRO dropping below its 200-day exponential moving average and hitting a low of $1.04 after failing to hold at $1.30. According to CoinMarketCap data, the token is the worst-performing asset among the top 100 cryptocurrencies this week, down 13% on weekly charts. At press time, ZRO was trading around $1.80, up 1.48% on daily charts, though trading volume declined 35% to $38 million.
An institutional wallet has made notable moves amid the selloff. Selini Capital deposited 2 million ZRO worth approximately $2.18 million to Binance, according to reports from on-chain monitoring. Two days prior, Selini Capital received 2.1 million ZRO from multisig wallet 0x907, which had originally received 8.5 million ZRO from LayerZero two years ago. The deposit may indicate that these tokens have completed their lock-up period. So far, this wallet has deposited over 4 million ZRO to exchanges while retaining another 4 million tokens.
Whale accumulation signals
Despite downward pressure, some positive signals have emerged. Spot netflow data from CoinGlass showed positive net flows for four consecutive days, though netflow turned negative at minus $203,000 in the most recent 24-hour period, indicating more ZRO leaving exchanges. CryptoQuant's Spot Average Order Size data revealed significant whale orders clustering between $1.1 and $1.0, suggesting these price levels represent key whale accumulation zones. The concentration of whale purchases during the decline indicates potential accumulation activity.
Technical outlook
LayerZero's Relative Strength Index formed a bearish crossover and fell to 58, though it remains within the bullish zone above 50. If selling pressure persists, the RSI may drop below 50, confirming a bearish trend. The token is currently testing the $1 support level. Continued downward momentum could push ZRO toward the 20-day moving average around $0.94. To invalidate this bearish scenario, LayerZero would need to close and hold above its 200-day moving average near $1.20.
