The Recent Bearish Move of LayerZero (ZRO): Trendline Rejection Analysis 📉
LayerZero (ZRO) is currently facing renewed selling pressure, as its price slides towards $3.19 following a rejection at a key trendline. The sharp downturn has shifted market sentiment to a more bearish outlook, sparking concerns about deeper declines. Traders and investors are closely monitoring whether ZRO can find support or if the downward trend will persist.
Market Dynamics: LayerZero Braces For Further Declines
● On the 4-hour chart, LayerZero has continued to gain negative momentum after a successful trendline rejection, falling below the 100-day Simple Moving Average (SMA) towards the $3.19 support level.
● The 4-hour Relative Strength Index (RSI) analysis indicates a bearish market shift with the signal line dropping below 50% towards 35%, suggesting further downward movement.
● The 1-day chart displays negative signs with a significant bearish candlestick formation following the rejection at the trendline, signaling heightened selling pressure.
● The RSI signal line on the 1-day chart has dipped below 50%, indicating momentum favoring the bearish side and potential further downside for ZRO.
Critical Levels: Support Or More Downside Ahead?
● The $3.19 support level is crucial for LayerZero’s potential rebound or further decline. Holding above this level could pave the way for a rise towards the $4.5 resistance.
● Breaking through the $4.5 resistance may lead to a rally targeting the next resistance at $5.6, with the possibility of surpassing higher levels.
● Failure to maintain the $3.19 support could result in additional declines, potentially testing the $2.69 range and signaling a more significant downward trajectory.
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