LayerZero [ZRO] was up 12% at press time, with Binance traders in the market driving the gains, as they remain critical to the asset’s next phase.
Still, this doesn’t eliminate the broader role of traders across the perpetual market who are actively positioning for more upside.
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Rising perpetual market volume supports ZRO’s rally
The broader gain in the market has been led by a surge in buying volume across the perpetual market for ZRO specifically.
The volume across the perpetual market for ZRO hit roughly $279 million in the past day, with the Long/Short Ratio staying at 1.56 as of writing. This indicates that the volume in the market is largely coming from long traders.
The context of the buying becomes more insightful when weighed against the Funding Rate of the market. This metric shows whether long or short positions are dominant in a perpetual contract market.
CoinGlass data shows that Binance accounts for the majority of the positions, with the OI-Weighted Funding Rate reaching 0.0066%, suggesting bullish positioning remains dominant.
Binance traders lead the bullish positioning
Binance, among all other cryptocurrency exchanges, controls the most volume across other venues, with data from CoinGlass reporting it at $92.36 million.
The volume dominance shows that the majority of the activity, more than 32% of the total volume, is coming from Binance. Moreover, traders’ actions matter in influencing the price trajectory.
Data shows that Binance traders are fully bullish on the price outlook. Retail traders are accumulating, with buying volume at 1.57. Whales, who control large amounts of capital, are on the same side with a 4.47 Long/Short Ratio, while smart money, which makes profitable bets, is also extremely bullish.
However, liquidation activity in the market warns that going bullish too soon carries a major risk of loss even as the price rallies. Binance traders in the past 24 hours have lost around $74,380, more than short traders’ $47,500 within the same window.
More broadly, losses across the broader market point to the same trend, as a lack of proper positioning has put longs at more than $141,281 in losses over the past 24 hours.
Selling pressure remains a risk to ZRO’s gains
Sellers in the market remain a major concern for what could limit ZRO’s performance in the near term. As it is, spot market flow shows that traders have continued to cash out steadily from the market, with roughly $2.52 million in Netflow, indicating more selling than buying.
This trend has continued over the last ten days, with roughly +$9.07 million in Netflow, confirming that sellers remain active in the market.
Final Summary
- ZRO’s rally is gaining support from strong perpetual market activity, with Binance traders playing a major role.
- Rising spot Netflow and liquidation data show that selling pressure remains a risk to ZRO’s gains.
