DoubleZero [2Z] surged by 11% following a broader market resurgence in the past 24 hours, at press time. During this spike, the volume spiked by more than 78%, reaching $12 million at press time.
Analytically, the rally was driven by institutions, USD inflows, and a technical breakout on the charts.
Daily USD inflows turn positive
As per data from DefiLlama, the altcoin saw positive inflows after two consecutive days of outflows. About $37.79 million had entered the 2Z market, though it was still small compared to the $90 million that left.
Since the start of February, the platform has seen more outflows than inflows. Over the past two weeks, its highest inflow has been $78 million, while its biggest outflow was $55 million the day before.
Source: DefiLlama
For these inflows by token, Solana [SOL] topped in the past 24 hours. This is probably because the token was deployed on the Solana blockchain. This increase took the total of Solana mainnet staking on DoubleZero to 168 million SOL.
Additionally, institutions were still convinced and were pouring in capital. For instance, crypto investment firm DBA maintained a stake in DoubleZero as its strategy to back Bitcoin [BTC] with its $68 million Fund II. This reinforced institutional backing.
2Z invalidates the descending trendline
The charts showed that 2Z broke above a descending trendline at $0.06647 that had held the price since the 24th of January. DoubleZero’s price continued to rise but now battles the mini resistance at $0.07560.
For the altcoin to sustain the shift in direction bias and momentum, the price has to stay above $0.08, which was the last lower low of the structure.
At press time, the MACD showed that bullish strength was increasing, as confirmed by the net buy volume. The Net Volume showed that buyers had outdone sellers, as they scooped 2.32 million 2Z tokens more than their counterparts sold.
Source: 2Z/USDT on TradingView
The invalidation of the existing price structure hinted at a potential bottom. This takes into account that $0.06913 was around the launch price of 2Z on Binance’s Spot market. Still, there was potential for a pullback for a retest of this breakout.
TVL declines from yearly highs
The 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 7x more than that of Cardano [ADA], which was at $161 million as per DefiLlama data.
DoubleZero’s TVL experienced a decline from its ATH high of $1.9 billion achieved this year. Its fees also dropped to around $316K at press time.
Source: DefiLlama
These metric readings showed that activity was mixed in sentiment, as USD inflows were positive while TVL was declining. On the other hand, price action was breaking out, but sustaining the rally depended on staying above $0.080.
Final Summary
- DoubleZero rallied about 11% in the past 24 hours amid positive inflows.
- For 2Z to remain bullish on the 4-hour chart, the price needs to break and stay above $0.080.
Source: https://ambcrypto.com/doublezero-up-11-analyzing-if-2z-can-hold-above-0-08/
