Double Zero [2Z] Rises 20%, But Bulls Face Setback: Is a $0.16 Break Possible?

The cryptocurrency Double Zero (2Z) experienced a surge of over 20%, outperforming the broader market. However, immediate selling pressure caused a retracement, casting doubt on the sustainability of this bullish movement. Current liquidity patterns suggest potential for higher prices, specifically aiming for $0.16 and beyond.

Key Takeaways

Double Zero (2Z) increased by more than 20%, outperforming most of the market, but sellers quickly countered, reversing the bullish momentum.
Analysis of liquidity clusters indicates that a price movement towards $0.16 is probable, offering potential upside.
2Z surpassed other cryptocurrencies in the dePIN sector and continued to lead, particularly among the top 100 cryptocurrencies, as reported by CoinMarketCap.
Within the last 24 hours, despite a significant surge, the price of 2Z retracted most of the gains earned.

Double Zero Shows Market Strength

Recent charts indicate that 2Z demonstrated its market potential by hitting a high of $0.2376 and breaking through a descending channel. However, the overall market remained bearish, as sellers pushed the price back down to below $0.15. This effort invalidated the bullish breakout seen on the four-hour chart.

Despite bearish conditions, bulls demonstrated resilience by keeping the price above the upper half of the channel. Indicators like the Bull Bear Power (BBP) and the Money Flow Index (MFI) showed upward movement, although the MFI reflected a gradual decrease in capital after the spike—from 80 down to 76.

Double Zero

Source: TradingView

Bulls maintained control in recent sessions, but a significant change in market dynamics would require a breakthrough above the resistance level of $0.18. A confirmed retest would affirm the shift in market character. On the other side, continued profit-taking by low-entry traders could push the price of 2Z closer to the lower support levels.

Potential for Increased Prices Signal Liquidity Clusters

Liquidity clusters surrounding 2Z indicate traders are positioning for higher prices, even amid aggressive selling reactions. Notably, buyers are taking positions around $0.14. The most substantial liquidity clusters lie between $0.16 and $0.18, areas that the market has yet to explore. Successfully clearing the $0.18 resistance would heighten the chances of confirming a bullish breakout.

Source: CoinGlass

Currently, 2Z possesses some positions below $0.14, but these are less concentrated compared to the ones above that level. Since these orders are dynamic, this weaker cluster does not play a significant role in influencing market direction unless bolstered by another cluster forming below it. The prevailing outlook suggests that another upward movement is the most likely scenario.

Is a Recovery on the Horizon?

Should the bulls continue their current momentum, the market may shift despite the overall bearish structure. The most considerable risk arises from broader market weakness, which could quickly undermine this bullish sentiment.

Presently, about 65% of holdings remain locked, which could translate into potential selling pressure. However, since the next unlock is about a year away, this does not pose an imminent threat.

Source: Tokenomist

While 2Z remains under bearish structural control, there are encouraging signs from the bulls. They are exhibiting stronger momentum compared to the bears, but confirming a market shift requires a clear break through the existing structure.