Double Zero, an infrastructure blockchain, could see a turnaround after a month-long decline that saw its value drop by 25%.
Recent data showed that its performance is growing steadily, with a 10% increase in the past day. However, this sentiment does not agree with all market participants.
2Z gains are attracting renewed interest
There has been a huge increase in interest around it DoubleZero [2Z] Recently, which AMBCrypto attributed to the remarkable performance of the asset over the past day.
However, a reading of community sentiment on CoinMarketCap showed inconsistencies, and the sample size did not confirm the claim that “100% of investors were bullish.”
Source: CoinMarketCap
However, higher participation supported the recent rebound. By press time, the number of shareholders had risen to 6,100 and set a new peak. This growth indicates a restoration of confidence and the possibility of supply pressure if accumulation continues.
Not every trader agrees
Part of the market remains bearish on 2Z, raising the possibility of a continuation of the month-long downtrend.
Analysis of derivatives market data revealed a negative funding rate weighted to open interest. When this indicator turns negative, it means that more open contracts are coming from traders anticipating a potential price decline.
Source: Coinglass
This bearish sentiment was also reinforced alongside capital inflows of $4.3 million. If this trend continues, it could indicate that more investors are anticipating further declines in the coming trading sessions.
2Z’s next move will determine the trend
2Z is trading near a major resistance area on the daily chart. A clear break above this area could confirm a bullish shift and open the way towards $0.28.
Moreover, the downtrend line continues to limit upward attempts. However, rejecting resistance would consolidate bearish control and extend the decline.
Source: Trading View
Chaikin Money Flow recorded a negative reading near -0.37, which showed that distribution is outpacing accumulation. This left traders focusing on whether demand improved before the next move.
For now, sentiment remains cautious, and the 2Z line may continue to trend downward unless buyers regain control at resistance.
Final thoughts
- 2Z now lies at a point where increasing holder confidence is conflicting with cautious derivatives positions.
- A decisive break, whether up or down, may reveal which side has stronger conviction.
