DoubleZero (2Z) jumped 11% following a broader market resurgence over the past 24 hours, as of press time. During this peak, volume increased by over 78%, reaching $12 million at press time.
Analytically, the rally was driven by institutions, dollar inflows and a technical breakout on the charts.
Daily USD Inflows Turn Positive
According to data from DefiLlama, the altcoin recorded positive inflows after two consecutive days of outflows. Around $37.79 million had entered the 2Z market, although this was still small compared to the remaining $90 million.
Since the beginning of February, the platform has recorded more exits than entries. Over the past two weeks, its highest entry was $78 million, while its largest exit was $55 million the day before.
Source: DéfiLlama
For these inflows per token, Solana (SOL) reached the peak in the last 24 hours. This is likely because the token was deployed on the Solana blockchain. This increase brought the total Solana mainnet stake on DoubleZero to 168 million SOL.
Moreover, the institutions were still convinced and capital flowed in. For example, crypto investment company DBA has maintained a stake in DoubleZero as part of its strategy to support Bitcoin (BTC) with its $68 million Fund II. This strengthened institutional support.
2Z invalidates the descending trendline
The charts show that 2Z broke above a descending trendline at $0.06647 that had held the price since January 24. DoubleZero price continued to rise but is now fighting the mini resistance at $0.07560.
For the altcoin to maintain the change in direction and momentum, the price must stay above $0.08, which was the last low in the structure.
At press time, the MACD showed bullish strength increasing, as confirmed by net buying volume. Net volume showed that buyers outperformed sellers, as they grabbed 2.32 million more 2Z tokens than their sold counterparts.
Source: 2Z/USDT on TradingView
The invalidation of the existing price structure suggests a potential bottom. This takes into account that $0.06913 was close to the launch price of 2Z on the Binance Spot Market. Nonetheless, there was potential for a pullback if this breakout was retested.
TVL declines from annual highs
Total value locked (TVL) and fees showed DoubleZero’s influence in the crypto industry, especially staking.
The altcoin had $1.083 billion in TVL, almost 7 times more than that of Cardano (ADA), which stood at $161 million according to DefiLlama data.
DoubleZero’s TVL has seen a decline from its peak of $1.9 billion reached this year. His fees have also dropped to around $316,000 at the time of publication.
Source: DéfiLlama
These metrics showed activity was mixed, with dollar inflows positive while TVL was down. On the other hand, price action was breaking out, but continued upside depended on staying above $0.080.
Final Summary
- DoubleZero is up around 11% in the past 24 hours amid positive inflows.
- For 2Z to remain bullish on the 4-hour chart, the price must break and stay above $0.080.
