LayerZero (ZRO) price is observing the impact of the broader market’s bearish cues as it struggles to rally.

The lack of bullishness among investors is also acting as resistance to any potential recovery ZRO could witness.

LayerZero Investors Are Skeptical

ZRO’s launch last month was met with considerable bullishness but the recent performance does not relay the same. In the past week, ZRO’s Open Interest plummeted by nearly 50%, falling sharply from $112 million to $66 million. 

This significant decline suggests a reduction in the number of outstanding contracts or positions held by traders, indicating diminished market activity or a shift in sentiment.

Meanwhile, ZRO’s Chaikin Money Flow, which tracks buying and selling pressure, mirrors this bearish sentiment. The indicator reflects continued selling pressure on ZRO, implying that more capital is leaving the token than entering it. This trend typically indicates a negative outlook among investors and traders.

The combination of declining Open Interest and a bearish Chaikin Money Flow underscores a challenging period for ZRO. The substantial decrease in Open Interest indicates reduced market participation or possibly a loss of confidence among traders. 

Read More: LayerZero Explained: A Guide to the Interoperability Protocol

Simultaneously, the persistent selling pressure highlighted by the Chaikin Money Flow suggests ongoing bearish sentiment, potentially leading to further downside in ZRO’s price.

ZRO Price Prediction: Preventing Further Decline

ZRO’s price declined by 32% in the span of 48 hours but noted a 15% recovery over the past day. The altcoin trading under $3.42 is still susceptible to a decline as the bearish cues remain persistent. This could result in ZRO falling through the support at $3.00.

This would not only lower ZRO’s price to $2.50 but also leave it vulnerable to further decline.

Read More: Top New Crypto Listings To Watch In July 2024

But if the altcoin manages to breach the resistance at $3.44, it could climb back to $3.82. Breaking this barrier would push ZRO’s price to $4.00, invalidating the bullish thesis.

The now-defunct crypto lending platform Celsius has settled its three-year-long case with KeyFi CEO Jason Stone. The litigation council submitted a letter to the judge detailing the agreement.

KeyFi and Celsius have a proper working relationship. The former served as Celsius’s investment manager between 2020 and 2021.

Fraud Case Settled: Celsius and KeyFi CEO Agree

The litigating council sent an official letter to US bankruptcy judge Martin Glenn, details of which were redacted, indicating that Celsius (the accused) and Mr. Stone (the plaintiff) had reached a settlement agreement.

KeyFi served as Celsius’s investment manager from August 2020 to March 2021, based on a Memorandum of Understanding (MOU). It worked under the Celsius umbrella as Celsius KeyFi and, therefore, expected part of the profits it made under Celsius over several staking and DeFi strategies.

Reportedly, the two parties had a “handshake agreement,” which Celsius allegedly refused to honor, leading KeyFi to miss out on “millions of dollars.” In a long section of the complaint, Stone claimed Celsius was running a Ponzi-style operation by luring depositors with high interest rates.

Read more: How To Identify a Scam Crypto Project

According to the plaintiff, this strategy was the lender’s approach to “repay earlier depositors and creditors.” The complaint, therefore, detailed:

• Negligently misrepresenting its risk management protocols.
• Fraudulently inducing KeyFi to work with Celsius by presenting misleading information about its business operations.

Neither Celsius nor KeyFi or Stone immediately responded to BeInCrypto’s request for comment.

While partnerships in the crypto space often rely on trust, verifying all aspects of the agreement and operations can prevent misunderstandings. This case underscores the need to balance trust with verification.

Talks of an altcoin season have been put to rest after the total crypto market cap briefly slipped below $2 trillion. The decline resulted from a broader price crash in which many altcoins reached extremely low values that had not appeared in weeks, some months, and others— years.

Despite the steep correction, a few cryptocurrencies posted gains in the first week of July.  Here are the top five.

MultiversX (EGLD) Bulls Show Resilience

MultiversX (EGLD), the native token of the new Internet economy blockchain, registered a 1.5% increase in the last seven days. However, the last 24 hours have been better as the price climbed by 7.15%% while trading at $31.42.

Earlier in the week, EGLD’s price increased to $32.18. But on July 3, the price fell to $29.43. Eventually, bulls could not defend the support, falling to $27.87. 

However, the 4-hour showed that bulls mounted support around $27 to prevent a further fall. As a result, a bullish engulfing candle appears on the chart, leading the token value higher.

In addition, the token’s price is above the 20 EMA (blue) and 50 EMA (yellow). EMA stands for Exponential Moving Average and measures price changes over a period of time.

Read More: What Is Altcoin Season? A Comprehensive Guide

If the price is below the short-term EMAs, the trend is bearish. However, since it is above the indicators, it means that EGLD may continue to jump. 

In addition, if this happens, the token will revisit its weekly high of $32.18. However, invalidation may occur if the market correction worsens.

MANTRA (OM) Triumphant After Tokenization Deal

Second on the list of altcoin gainers is MANTRA (OM). MANTRA is a layer-1 blockchain focused on the security of Real-World Assets (RWAs). 

This week, OM’s price increased by 11%, trading at $0.78 at press time. Initially, the token’s price jumped to $0.89 after the project concluded a $500 million tokenization deal.

Afterward, the value declined to $0.74 before the recent revival. According to the OM/USD daily chart, the Moving Average Convergence Divergence (MACD) is positive.

As a key technical indicator, the MACD helps traders spot trend reversals by comparing the difference between the 26-day EMA (orange) and the 12-day EMA (blue). If the reading is positive, it implies that momentum is bullish and prices can increase.

The opposite happens when the MACD is negative. Since the reading is in the green zone, it implies that OM’s momentum is bullish. A look at the Fibonacci retracement indicator gives an idea of possible price targets.

From the chart above, OM can climb to $0.84, which is the 0.618 Fib level position. This will be the case if buying pressure increases. However, if things turn around, OM may retrace, possibly leading the price back to $0.72.

LayerZero (ZRO) Tops the Altcoin Gainers Table

LayerZero (ZRO) is a surprise entry into the top altcoin gainers of the first week. This is largely due to the controversy that rocked the token launch and airdrop distribution.

But none of the top 3 altcoin gainers comes close to ZRO. The token trades at $3.32, representing a 29.30% increase this week.

According to the 4-hour chart, ZRO was oversold on July 5. During this period, the Relative Strength Index (RSI), which measures momentum was below 30.00. The Chaikin Money Flow (CMF), which tracks accumulation and distribution, confirms the selling pressure at that time.

However, as of this writing, traders seem to be accumulating the token, as indicated by the CMF reading. The RSI is also on the cusp of jumping above the 50.00 neutral point. 

Read More: Which Are the Best Altcoins to Invest in July 2024?

If this happens, coupled with a rise of the CMF into the positive region, ZRO’s price can reach $3.45 in the short term. However, the inability to reach the zones mentioned above may invalidate the prediction. Should this happen, ZRO may slip to $3.07.