LayerZero's ZRO token jumped 12% as Binance traders piled into long positions across the perpetual market. Yet rising spot outflows and mounting liquidations point to selling pressure that could still cap the rally.
LayerZero [ZRO] was up 12% at press time, with Binance traders in the market driving the gains. Still, the broader perpetual market shows traders across venues actively positioning for more upside.
Perpetual market volume backs the rally
Volume across the perpetual market for ZRO hit roughly $279 million in the past day. The Long/Short Ratio stayed at 1.56 as of writing, indicating the volume is largely coming from long traders. The context becomes more insightful when weighed against the funding rate of the market, which shows whether long or short positions dominate a contract.
CoinGlass data shows Binance accounts for the majority of positions, with the OI-Weighted Funding Rate reaching 0.0066%, suggesting bullish positioning remains dominant.
Binance traders lead the bullish positioning
Binance controls the most volume across venues, with CoinGlass data reporting it at $92.36 million. That dominance means more than 32% of the total volume is coming from Binance. Retail traders are accumulating, with buying volume at 1.57. Whales hold a 4.47 Long/Short Ratio on the same side, and smart money is also extremely bullish on the outlook.
However, liquidation activity warns that going bullish too soon carries risk even as the price rallies. Binance traders in the past 24 hours lost around $74,380. That is more than short traders, whose losses reached $47,500 in the same window. Across the broader market, longs have lost more than $141,281 over the past 24 hours.
Selling pressure remains a risk
Spot market flow shows traders have continued cashing out, with roughly $2.52 million in Netflow indicating more selling than buying. The trend has continued over the last ten days, with roughly $9.07 million in Netflow, confirming that sellers remain active in the market.
Source: AMBCrypto
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