A LayerZero-linked wallet deposited 1 million ZRO tokens worth $1.43 million into Binance, creating fresh supply pressure as the token approaches a critical $1.35 support level. According to latest reports, this transfer indicated intent to position tokens closer to market participants, often associated with potential selling activity. The retained 29 million ZRO reserve worth $41.34 million continues to represent a significant overhang that could influence future price action, with such inflows occurring near key support levels often acting as catalysts for breakdown. The presence of such large remaining holdings introduces the risk of continued inflows, especially if the market weakens further, dampening buyer confidence and reinforcing a supply-heavy environment.
Despite the whale-driven deposit, Netflow data showed a -$371.34K reading, confirming that tokens continued exiting exchanges overall. As reported by AMBCrypto, this indicated that broader participants still withdrew ZRO, effectively reducing aggregate sell-side pressure across the market. However, this dynamic created a conflicting signal, as localized inflows from large holders clashed with wider accumulation trends, with price direction often depending on which force dominates over time. The latest session added to this weakness with a 6% decline, pushing ZRO directly into the $1.35 support area where structure continues to deteriorate.
LayerZero [ZRO] price action showed clear structural weakness after it broke below the $1.60 support and traded near $1.41. According to AMBCrypto analysis, this breakdown confirmed a shift in market structure, as price continued forming lower highs after repeated rejection near the $2.00 resistance. The latest move stands out with a decisive bearish candle and strong follow-through, indicating active selling rather than passive drift. Recovery attempts are capped near $1.48–$1.50, confirming sellers are stepping in earlier on each bounce, while the coin trades below key short-term averages with a bearish crossover between the 20-day and 50-day MA. If $1.35 fails to hold, the structure opens toward the next downside zone near $1.10–$1.00, with any relief bounce requiring reclamation of $1.48–$1.50 followed by a stronger move above $1.60–$1.65.
Derivatives data further reinforced the bearish outlook as long liquidations reached $480.29K compared to just $6.13K in short liquidations, highlighting a heavily one-sided market setup. As reported by Coinpedia, a significant portion of this came from Hyperliquid with ~$463K in long liquidations, with additional contributions from Binance and other exchanges. This imbalance indicates that overleveraged long positions faced forced exits, amplifying downward price movement. The absence of significant short liquidations indicated that bearish positions remained relatively intact, suggesting the market continued flushing out bullish exposure rather than reversing trend direction.
According to AMBCrypto analysis, ZRO remains under pressure as whale-driven inflows introduce localized supply while broader outflows attempt to support price. The structural breakdown, weak RSI positioning, and heavy long liquidations point toward continued downside risk, with the latest 6% decline confirming the trend remains firmly bearish. If $1.35 fails to hold, the level is under pressure for a potential acceleration in downside momentum, with the probability of breakdown increasing as demand gets absorbed more aggressively. Market participants remain cautious, monitoring whether exchange balances would continue declining or begin to reverse, while the risk remains tilted to the downside given persistent downtrend pressure and rising exchange inflows.
