Double Zero declined decisively following a major liquidity shift that triggered a broad capitulation.
At press time, the altcoin was down more than 12%, with rebound prospects appearing muted as momentum remains notably weak. Although market participants continue to anticipate a reversal, the technical confluence necessary to support such a move has not yet materialized.
Downtrend Deepens as 2Z Loses Momentum
The decline of Double Zero (2Z) does not appear to be slowing at the time of publication. From a technical perspective, the chart shows an absence of immediate support levels – areas that typically serve as buffers for price stabilization or rebounds.
However, the chart reveals lower ascending support that could serve as a potential pivot for price action.
This structure aligns with a demand zone between $0.114 and $0.118, an area that can provide the necessary basis for price to stabilize or attempt a recovery.
Source: TradingView
A rebound from this area towards the $0.15 level would represent a potential upside of 28%, with further gains possible if momentum improves.
That said, trader confidence remains fragile. Over the past 24 hours, long traders suffered losses exceeding $719,700, compared to just $2,400 in losses recorded by short sellers.
Technical indicators are strongly bearish
Technical indicators continue to argue against aggressive accumulation at current levels. The Moving Average Convergence Divergence (MACD) remained firmly bearish after printing a classic “death cross”.
This trend forms when the MACD line crosses below the signal line and is often associated with prolonged bearish pressure. Historically, such setups have preceded sharper declines as selling momentum accelerates.
The Relative Strength Index (RSI) reinforces this bearish pattern. At press time, the RSI had slipped into the bearish zone between 30 and 50 and printed a reading of 46, with momentum still to the downside.
Source: TradingView
A sustained decline in the RSI generally reflects a weakening of market strength and increases the likelihood of a continued price decline.
If both indicators remain under pressure – especially with the MACD firmly in negative territory – 2Z could suffer greater losses in the near term.
Spot demand lags as derivatives traders maintain long bias
Spot market activity has shown signs of accumulation, with buyers increasing their positions over the past two weeks. The scale of these purchases, however, remains modest.
According to CoinGlass Spot Netflow data, total spot purchases during this period were approximately $874,400. While this influx may help slow the pace of the decline, it remains insufficient to provide meaningful price support.
Meanwhile, sentiment in the 2Z perpetual market continued to hint at a potential rebound near the previously identified support zone.
The Long/Short ratio, which tracks directional positioning – above 1 indicating long dominance and below 1 signaling short control – supports this view.
At press time, the ratio stood at 1.043. Additionally, the open interest weighted funding rate showed a positive rate of 0.0019%, suggesting that capital positioning remained tilted in favor of bullish traders.
This indicates that despite recent liquidation losses, traders’ conviction in long positions remains intact. Whether or not this positioning holds could prove crucial in shaping 2Z’s next directional move.
Final Thoughts
- 2Z could extend its decline until it finds a support level capable of cushioning further losses, although a potential 28% rebound remains in sight.
- Indicators point to a short-term pullback, although spot traders and 2Z perpetual traders continue to maintain a bullish bias.
