Double Zero (2Z) finds itself in a precarious position, experiencing a significant downturn that has seen its value drop over 12% amid a major liquidity shift. Despite the prevailing bearish momentum and a lack of immediate technical support, market participants are eyeing potential stabilization zones and a possible rebound, even as various indicators present a mixed outlook for the altcoin's immediate future.
Deepening Downtrend and Technical Woes
The current trajectory for 2Z points to a continued decline, with technical charts revealing an absence of strong, immediate support levels that could cushion its fall. The severity of the sell-off is underscored by firmly bearish technical indicators. The Moving Average Convergence Divergence (MACD) has printed a "death cross," a classic pattern often signaling prolonged downside pressure and accelerating selling momentum. Further reinforcing this bearish sentiment, the Relative Strength Index (RSI) has slipped into the bearish zone at 46 and continues its downward trend, reflecting weakening market strength. This technical confluence has already hit long-positioned traders hard, who have incurred over $719,700 in losses recently, dwarfing those of short sellers.
Glimmers of Hope and Contradictory Sentiment
Amidst the pronounced bearish signals, there are nascent signs of a potential bottom. A lower ascending support, aligning with a demand zone between $0.114 and $0.118, could serve as a crucial pivot point for 2Z, offering the necessary footing for price stabilization or even a recovery. A rebound from this area towards the $0.15 level could represent a significant 28% upside. Intriguingly, spot market activity shows modest accumulation over the past two weeks, though insufficient to halt the decline meaningfully. Conversely, the derivatives market presents a more optimistic picture. Despite recent liquidations, the Long-to-Short Ratio, standing at 1.043, indicates a dominance of long positions, and a positive Open Interest–Weighted Funding Rate suggests that bullish conviction among perpetual traders remains intact. This persistent long bias in the derivatives market, despite the current price action, could prove pivotal in shaping 2Z's next directional move once a solid support level is established.
