DoubleZero [2Z] extended its sharp U-turn from $0.04730, rallying by over 20% in just 24 hours following the announcement of a strategic partnership with Kalshi prediction markets. According to reports from AMBCrypto, the altcoin's rally was driven by fundamentals and leverage, which catalyzed a spike in trading activity. The partnership announcement caught the attention of prediction market users and the Asia front, with Kalshi distributing its real-time data for event contracts over DoubleZero Edge off the public internet.
The partnership announcement triggered significant trading activity improvements, with daily volume jumping by 74% as the volume-to-market-cap ratio crossed 17%. As reported by AMBCrypto, this ratio confirmed elevated speculative interest in the presence of high liquidity. Data showed that most buying activity concentrated on Upbit, which accounted for 25% of 2Z's global volume, while Binance came second but with half the share at 13%. The surge occurred as the crypto market cap fell below the $2.20 trillion mark, allowing DoubleZero to recover some of its lost capital.
The initial buying pressure due to the Kalshi partnership triggered a short squeeze, amplifying the gains through leverage positioning. According to AMBCrypto reports, funding rates for perpetual traders on DEX platforms like Hyperliquid were deeply negative, between 0.14% and 0.12%, with the overall OI-Weighted Funding Rate at -0.56% per hour, signaling extreme one-sided short positioning. This negative funding rate structure created conditions for a short squeeze when the price reversed from the $0.04730 support level.
Looking at the numerical outlook, DoubleZero reflected high volatility after chopping between $0.0540 and $0.0580, breaking down to $0.04730 where it reversed. As reported by AMBCrypto, the pattern resembles a cup and handle pattern, especially after 2Z briefly crossed $0.0580. The altcoin had a bullish MA Cross but from a smaller timeframe scale, with the Choppiness Index (CHOP) below 40, indicating the uptrend was strong. However, interactions were shooting up from 221 to 1,820, with momentum indicators pointing at continuation but a blockade remaining at $0.058 resistance.
Technically, a bullish market structure shift was dependent on staying above the horizontal resistance, otherwise, 2Z price action would remain bearish and this rally would be regarded as a news-driven pump that would be likely unsustainable. According to AMBCrypto analysis, the bulls need to clear the $0.058 resistance level to maintain the current momentum and confirm the breakout from the cup and handle pattern formation.
