This article is also available in Spanish. LayerZero (ZRO) is currently going through a turbulent phase, with recent recovery attempts failing amid growing bearish pressure.
The altcoin's upward momentum, which initially indicated its potential, has stalled and the possibility of a downward movement has emerged. With key support levels under threat and bearish forces gaining momentum, LayerZero's recovery prospects are becoming increasingly uncertain.
the ZRO price recently showed a bearish reversal on the four-hour chart, falling below the 100-day simple moving average (SMA) after failing to break above this key technical level. The failure to sustain the upward momentum indicates a change in market sentiment, with selling pressure outweighing buying interest.
An analysis of the four-hour relative strength index (RSI) shows that the signal line is declining, falling to 44% after previously rising to 47%, indicating a shift in strength to the neutral zone. The 44% level indicates an approach to the oversold zone, raising concerns about the possibility of further declines. (LayerZero, pg. 3).
In addition, the daily chart of LayerZero shows negative momentum, which is emphasized by several bearish candles and a decline below the 100 SMA. Several pessimistic candlesticks have formed and dropped below the SMA, indicating a strengthening negative sentiment as sellers exert downward pressure.
Finally, on the daily chart, the RSI has fallen below the important 50% level and is now at 44%; a drop below 50% means that selling is beginning to dominate and may increase concerns about further price declines as it approaches the oversold zone. What is the future of LayerZero? Judging from the current market activity, LayerZero seems to be falling further towards the $3.5 support level. A break of this level could extend the cryptocurrency's fall to other key support levels.
LayerZero is up more than 7% as bulls fuel a new rally and a break of the $ 4.5 level is around the corner?
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