Alameda Dumps Another $15M of ZRO, LayerZero Traders Learn to Love the Red

LayerZero continues its descent after getting rejected at $2.2 a week ago. The altcoin has printed lower lows ever since, touching $1.8. At press time, ZRO changed hands at $1.83, down 8.42% on the daily. Its market cap bled 7% to $575 million.

Institutional players haven't made things easier. After two months of silence, Alameda Research decided it was time to resume its LayerZero liquidation tour. The notorious trading firm deposited 7.93 million ZRO worth $15.3 million to Wintermute, exiting its entire team wallet position. When teams bail during a downturn, it's usually not a great sign for sentiment.

Alameda has form here. The firm has sold ZRO multiple times before, and nearly every instance happened near a local top. Last time, ZRO crashed from $2.10 to $1.50 post-dump. This round, they sold deeper into the dip, but the market still reacted aggressively—dropping over 6% and accelerating the downward momentum.

Technical indicators confirm the pain. The RSI slid from 47 to 41, pushing deeper into bearish territory. ZRO also broke below its 50 and 100-day EMAs, validating the downtrend's strength. If selling pressure from the big players continues, the path of least resistance stays lower.

Currently, ZRO is testing $1.8 support. If that gives way, $1.4 comes into play.

Not all doom and gloom, though. Buyers have stayed active despite the carnage. Exchange data shows spot netflow has been negative for over 30 straight days—at press time, netflow sat at -$609k. Negative netflow typically means buyers are absorbing more supply than sellers are dumping on exchanges. That's theoretically bullish for scarcity, even if it hasn't moved the price yet.

If demand holds and sellers eventually exhaust themselves below $2, ZRO could stage a recovery back to