LayerZero (ZRO) records $50 million cash outflow as price drops 31%

LayerZero (ZRO) price is being influenced by bearish signals in the broader market, making it difficult for it to grow. Lack of investor optimism is also a barrier to any recovery for ZRO.

Also Read: LayerZero (ZRO) price falls below 3 USD after listing, on- chain transactions down 97%

LayerZero investors are skeptical

The ZRO launch last month was met with considerable optimism but recent performance has not shown the same. Over the past week, ZRO's Open Interest has plummeted nearly 50%, from $112 million to $66 million. This significant drop indicates a decrease in the number of contracts or positions held by traders, signaling a decline in market activity or a change in sentiment.

Meanwhile, ZRO's CMF index, which tracks buying and selling pressure, also reflects this bearish sentiment. The indicator shows continued ZRO selling pressure, implying that there is more Capital leaving the Token than entering. This trend often indicates a negative outlook among investors and traders.

The combination of falling Open Interest and falling CMF suggests a difficult period for ZRO. A sharp drop in Open Interest indicates reduced market participation or possibly a loss of confidence among traders.

At the same time, the persistent selling pressure indicated by CMF suggests continued bearish sentiment, which could lead to a further decline in ZRO price.

ZRO Price Prediction : Prevent further decline

ZRO price fell 32% within 48 hours but recovered 34% yesterday. This cryptocurrency is trading at 4.20 USD but is still at risk of falling as bearish signals persist. This could cause ZRO to fall below the $3.00 support level. Not only does this drop the price of ZRO to $2.50, but it also makes it vulnerable to further declines.

Breaking the barrier and pushing ZRO price above $4.00 would likely invalidate the bearish thesis somewhat.

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