Key Takeaways
What’s the current outlook of 2Z’s price action?
2Z gained more than 20%, outperforming the entire market, but sellers responded instantly, reverting the bullish breakout.
Which direction is 2Z headed?
Based on the concentration of liquidity clusters, the most likely price movement for 2Z is toward $0.16 and beyond.
Double Zero outperformed the dePIN sector while extending this lead to the entire crypto market, particularly the top 100, per CoinMarketCap.
In the past 24 hours, the price of 2Z surged by more than 20%, but it quickly erased most of these gains.
Double Zero outperforms the crypto market
On the charts, 2Z has shown its real market strength by spiking to $0.2376, breaking the descending channel. The market remained in a bearish structure, as bears responded with a pushback to levels below $0.15.
They invalidated the bullish breakout on the 4-hour chart.
While the 2Z price remained under bearish control, it was the bulls who were stronger in this session. That way, 2Z outperformed the market. Bulls were defending the price above the upper half of the channel.
The Bull Bear Power (BBP) and Money Flow Index (MFI) were pointing north. The MFI showed that capital was slowly withdrawn after the spike; hence, the drop from 80 to 76.
Source: TradingView
Bulls remain in control over the few sessions, but in a bear structure, that only changes if the upper resistance at $0.18 is broken. A subsequent retest would ascertain a change in character and structure.
Conversely, if low-entry traders continue to withdraw capital through profit-taking, they may return the price of 2Z near the lower support level.
Liquidity clusters signal more upside potential
The liquidity clusters on 2Z suggest that traders are betting on higher prices, even if sellers reacted significantly. Consequently, they met traders who boarded the train for around $0.14.
The larger liquidity clusters appeared between $0.16 and $0.18. The market had yet to tap into liquidity in these zones. Clearing the $0.18 zone would increase the chances of confirming a bullish breakout.
Source: CoinGlass
At the same time, 2Z still had some positions below $0.14, but were not as dense as those above. Again, they were very close to the price.
Hence, this weak cluster was insignificant in determining direction unless another was formed below, since the orders are dynamic. According to the current outlook, another bounce to the upside remained the most likely.
Can this be a hint of a looming recovery?
If the current strength of bulls continues, though, in a bear structure, the market could flip. The most significant bear threat was the broader market weakness, which could quickly erase this outlook.
There was still 65%, which was locked, suggesting potential sell pressure. However, the next unlock was in about a year and thus did not pose any threat.
Source: Tokenomist
2Z remains in bear control on the structure, but bulls have shown signs of a comeback. They had more momentum than bears but were yet to confirm the flip, only by breaching the structure.
