Foreign media analysis indicates that LayerZero's token ZRO experienced a double-digit drop during the recent market downturn. The article argues that the current decline is not solely due to price weakness; trading volume, open interest, and spot demand are also deteriorating simultaneously, suggesting that short-term selling pressure has not yet eased significantly.
Trading volume rose to $45 million.
Data shows that ZRO's trading volume rose to approximately $45 million in the past 24 hours, an increase of about 12% on a daily basis. Continued high volume during a price decline typically indicates that selling pressure is still being released, rather than buying pressure taking over.
The perpetual contract market also cooled down in tandem. Open interest fell to approximately $80 million, a 16% decrease from the previous day. The article points out that a decline in open interest alone does not necessarily indicate a bearish market, but if prices fall while funds are withdrawn, it often means that traders are reducing their risk exposure, and some positions leaving the market may also be related to liquidation.
Funding rates turned negative
The article mentions that ZRO's funding rate has turned negative. This typically indicates that in the perpetual contract market, remaining funds are more skewed towards the bearish side, and traders' expectations for further price declines are strengthening.
From a technical perspective, the MACD has shown a death cross signal, indicating that short-term momentum remains weak. At the same time, the Chaikin Money Flow has also fallen into negative territory, with a reading of approximately -0.17 given in the text, suggesting that the funds driving price fluctuations are primarily from sellers.
Spot net cash flow continues to contract
Demand in the spot market also remained weak. The article cites exchange net inflow data, stating that from May 26th to the time of writing, the net inflows were approximately $532,000, $172,900, and $98,200 respectively, showing a continuous decline.
While prices declined, spot buying did not increase accordingly, indicating that new market demand was insufficient to absorb the continuous sell orders. Based on this, the article concludes that if this situation continues, ZRO may continue to test lower levels.
From an overall structural perspective, ZRO currently faces pressure primarily from three aspects: increased trading volume during price declines, withdrawal of funds from contract trading, and a rapid cooling of spot demand. Based on this, foreign media believe that the short-term bottoming signal for ZRO is not yet clear.
