LayerZero Price Plummets Amid Bearish Market Signals and Imbalanced Liquidations
LayerZero's price dropped by over 11% in the past 24 hours as trading activity decreased, while major cryptocurrencies like Bitcoin and Ethereum saw gains of nearly 2%. The decline was attributed to a bearish market structure and increased selling pressure.
The token broke below its sideways range of $1.244 to $2.593 last month and confirmed the breakdown with a double retest of the $1.244 level, turning it from support to resistance. This has led to concerns that LayerZero may drop further to its October 10 low of $0.310.
The bearish signals were compounded by long liquidations spiking at a rate of almost 10x more than short liquidations. Cumulative short liquidation leverage was approximately $1 million, while long positions totaled $378.5K between specific price ranges. This imbalance in leverage favored shorts and contributed to the decline.