The LayerZero price plunged 8% in the last 24 hours to trade at $3.70 at press time.
Despite the steep correction, the ZRO price remains in the green by more than 40% on the weekly timeframe.
The LayerZero Price Falls Out of a Positive Price Channel
4-hour chart for ZRO/USDT (Source: TradingView)
The LayerZero price fell out below a short-term positive price channel in the last few hours, and is now testing the immediate support level at $3.6337. Should the crypto fall below this point, it could be at risk of falling to the next key mark at $2.9400 in the following 24 hours. An extremely bearish scenario might see ZRO plummet to as low as $2.4315.
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However, the LayerZero price staying above the $3.6337 support for the next 8 hours could invalidate the bearish thesis. Traders might then identify ZRO as a long opportunity. With this potential buy pressure, the altcoin could attempt to flip the $4.2811 resistance level into support.
Major Bearish Technical Flags Triggered
Technical indicators on the altcoin’s 4-hour chart warn that the LayerZero price might drop some more in the coming few hours. More specifically, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are showing bearish signs. In the last couple of hours, major bearish technical flags were triggered by both indicators.
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Firstly, the MACD line crossed below the MACD Signal line. Traders might see this as an indication that the LayerZero price has entered into a short-term bearish cycle. What’s more, the gap between the two technical indicators is widening, which could suggest that the bearish momentum is intensifying.
Meanwhile, the RSI broke below its Simple Moving Average (SMA) line. Since these two lines intersected in the last couple of hours, the RSI has also plummeted to the mid 50s. It is negatively sloped as well, which might be a precursor to a major bearish shift in ZRO’s momentum. A break below 50 could serve as a confirmation of this.
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