Double Zero Rises 10% After Recent Drop – Is 2Z Starting to Turn Around?

Double Zero, a blockchain infrastructure project, appears to be experiencing a potential turnaround after its value plummeted by 25% over the past month. New data indicates that the asset has gained 10% in value within the last day, yet not all participants in the market share this optimistic outlook.

Key Takeaways

Double Zero (2Z) has seen a 10% increase after a 25% decline over the past month.
Interest in 2Z has surged, but mixed community sentiment suggests not all investors are bullish.
Some traders remain bearish, indicating the possibility of continued downward pressure.
A critical breakout above resistance is needed for a bullish trend, while supply dynamics may influence short-term price action.

DoubleZero [2Z]

Renewed Interest in 2Z Gains Momentum

Recently, there has been a marked increase in interest surrounding DoubleZero [2Z], according to AMBCrypto, which attributed this surge to the asset's positive performance over the past day. However, the Community Sentiment metric on CoinMarketCap revealed mixed feedback, as the sample size did not substantiate the claim that “100% of investors were bullish.”

2Z holding chart.
Source: CoinMarketCap

Despite this, the rising number of participants appears to support the recent price bounce. As of now, the holder count has reached 6,100, marking a new peak. This increase suggests a recovery in confidence, which could lead to a supply squeeze if accumulation trends continue.

Diverging Opinions Among Traders

Conversely, a segment of the market remains skeptical about 2Z’s future, raising the probability that the downward trend could persist. An analysis of derivative market data uncovered a negative Open Interest-Weighted Funding Rate, indicating that more open contracts are held by traders anticipating a further price drop.

2Z open interest weighted chart.
Source: CoinGlass

This bearish sentiment has grown alongside capital inflows totaling $4.3 million, suggesting that more investors may be anticipating a decline in the upcoming trading sessions if this trend persists.

Future Moves of 2Z Could Shape the Trend

At present, 2Z is trading close to a critical resistance level on its 1-day chart. A successful breakout above this level could signify a bullish shift, paving the way towards a target of $0.28. However, the persistent downtrend line continues to limit any upward moves. Should the price face rejection at resistance, bearish control may strengthen, prolonging the decline.

2Z chart
Source: TradingView

The Chaikin Money Flow indicator has reported a negative value of approximately -0.37, indicating that distribution currently outweighs accumulation. Traders are now keeping a close eye on demand levels before the next market movement.

For the moment, market sentiment remains cautious. Unless buyers are able to regain control at the current resistance level, 2Z may continue to trend downwards.

Conclusion

As the situation develops, stakeholders should remain attentive to market indicators and potential shifts in sentiment, which will play a crucial role in establishing 2Z’s next moves in the cryptocurrency landscape.