LayerZero: Whale Dumps $3.96M - Can ZRO Bulls Defend $1?

LayerZero Whale Dumps $3.96M in ZRO

After recovering from recent hacking issues, LayerZero [ZRO] made strides to reclaim $1 and even hit $1.2. However, it now faces formidable resistance at this level. ZRO has closed at lower lows for three consecutive days, breaking below the $1 support and hitting a low of $0.09. Currently, LayerZero trades at $1.007, reflecting a 5.7% decline on daily charts.

Whale Selling Activity

With ZRO on the decline, a whale is actively offloading assets. Data from Arkam indicates that over the past 24 hours, this whale has sold 3.51 million ZRO tokens valued at $3.96 million to Binance. Despite these sales, the wallet retains 1.2 million ZRO worth $1.2 million, suggesting the holder is yet to fully capitulate and may be locking in gains.

Market Sentiment

• The Exchange Flow Balance remains positive, indicating a heavier selling trend than buying.
• Increased supply can lead to further price declines due to decreased scarcity.

The market's weak momentum combined with ongoing sell-side activity suggests a continued risk. The Stochastic Momentum Index (SMI) shows that sellers currently dominate, with readings low at 6, emphasizing the lack of bullish pressure.

Can Bulls Hold $1?

If selling persists, ZRO may drop back to the $0.88 support. Conversely, should the $1 mark hold, there is potential for the altcoin to rally back toward $1.3.