LayerZero Plunges 11% Amid Bearish Market Signals
LayerZero's price has dropped by over 11% in the past 24 hours, while major cryptocurrencies like Bitcoin and Ethereum have seen a gain of almost 2%. The decline of LayerZero is attributed to bearish market signals, including a breakdown below key structural levels. Since February 11th, when its price reached $2.593, LayerZero has been making lower lows.
The token broke below the range between $1.244 and $2.593 last month, confirming the breakdown with a double retest of the $1.244 level, turning it from support to resistance. This has led to a trading pattern towards the low created on October 10th's crypto market crash.
Buy orders have dominated aggregate liquidations since February, resulting in long squeezes. The CoinGlass data shows that almost $512K of long positions were wiped out compared to just $5.77K worth of shorts. This amplifies the price drop and raises concerns about the token's future performance.