ZRO has dropped over 15% in the past 24 hours, significantly underperforming Bitcoin. Foreign media believe this decline is more indicative of a broad risk-off sentiment affecting altcoins overall, rather than any new specific negative catalyst for LayerZero.
Trading volume dropped by more than 50%
Data shows that ZRO's intraday trading volume has dropped to approximately $67.68 million, a decline of over 50% from the previous period. The market capitalization has also declined in tandem, indicating a clear reduction in capital participation and a weakening of short-term trading activity.
The total market capitalization of the cryptocurrency market declined, while Bitcoin's market share rose to 57.8%. This typically indicates that capital continues to flow back into relatively stable assets, placing greater selling pressure on low-market-cap tokens.
Spot still shows net outflows.
Despite the rapid price decline, spot flows on the exchange have not turned into significant inflows. On June 5, ZRO recorded a net outflow of approximately $448,000, indicating that some holders still prefer to transfer tokens off the platform rather than sell immediately.
However, this signal is currently insufficient to reverse the weak trend. Previous stronger selling pressure has drained considerable liquidity, and market sentiment remains cautious, with limited willingness for new funds to enter.
$1.098 becomes a key level
From a price structure perspective, ZRO has broken below the $1.098 support and continues to trade within a descending channel. The price briefly attempted a rebound near the lower boundary of the channel but failed to hold, allowing sellers to regain control.
Unlike the spot market's weakness, the open interest-weighted funding rate in the derivatives market remains positive at approximately 0.0395%. Foreign media suggest this indicates some leveraged traders are still betting on a rebound; however, if prices continue to decline, long positions could face increased liquidation pressure.
The Relative Strength Index (RSI) is at 33.69, nearing the oversold zone. If buying pressure fails to reclaim the $1.098 area, the next key support level may be around $0.80.