Double Zero, the infrastructure blockchain, could see a turnaround after a month of decline that saw its value fall by 25%.
Recent data has shown that its performance has been increasing steadily, with a 10% gain over the past day. However, this feeling does not correspond to all market participants.
2Z Earnings Spark Renewed Interest
There has been a significant increase in interest around DoubleZero (2Z) recently, which AMBCrypto attributed to the asset’s notable performance over the past day.
However, reading community sentiment on CoinMarketCap showed inconsistencies and the sample size did not support the claim that “100% of investors were bullish.”
Source: CoinMarketCap
Despite this, rising participation has supported the recent rebound. As of press time, the number of holders has climbed to 6,100 and set a new high. This growth suggests a return of confidence and a potential tightening of supply if accumulation continues.
Not all traders agree
A segment of the market remained bearish on 2Z, increasing the likelihood that the month-long downtrend will continue.
Analysis of derivatives market data revealed a negative interest-weighted open funding rate. When this indicator becomes negative, it implies that more open contracts are coming from traders who anticipate a possible drop in prices.
Source: CoinGlass
This bearish sentiment also strengthened alongside capital inflows worth $4.3 million. If this trend continues, it could indicate that more investors are expecting further declines in the coming trading sessions.
The next move of 2Z will determine the trend
2Z is trading near a key resistance zone on the daily chart. A clear break above this zone could confirm a bullish shift and open the way towards $0.28.
On top of that, the downtrend line has always limited upside attempts. However, a rejection of resistance would strengthen bearish control and extend the decline.
Source: TradingView
Chaikin Money Flow printed a negative reading close to -0.37, showing that distribution outweighed accumulation. This has left traders focused on whether demand improves before the next move.
For now, sentiment has remained cautious, and 2Z may continue to fall unless buyers regain control of resistance.
Final Thoughts
- 2Z is now at a point where growing holder confidence collides with cautious derivatives positioning.
- A decisive breakout, up or down, can reveal which side has the strongest conviction.
