LayerZero faces pressure as bearish signals mount

LayerZero’s ZRO token remains under pressure after recording one of the sharpest declines in the crypto market, with multiple indicators pointing to weakening demand and growing selling activity.

Trading volume increased 12% to approximately $45 million over the past 24 hours, a move that coincided with falling prices and suggested sellers were becoming more aggressive.

Open interest in ZRO perpetual contracts declined 16% to about $80 million, indicating that traders are reducing exposure as market uncertainty increases.

The funding rate has also turned negative, showing that a growing share of derivatives traders are positioning for additional downside.

Technical indicators have reinforced the bearish outlook, with the Moving Average Convergence Divergence indicator forming a death cross pattern that is often associated with weakening momentum.

The Chaikin Money Flow indicator dropped to negative 0.17, signalling that selling pressure has outweighed buying activity and that capital continues to leave the asset.

Spot market demand has also deteriorated significantly, with exchange net inflows falling from roughly $532,000 to just over $98,000 within three days, leaving buyers struggling to absorb the growing wave of sell orders and increasing the risk of further losses.

At the time of reporting, LayerZero price was $1.15.