**ZRO Token's Rally Stalls, Declines 10% in Two Weeks**

**Market Turnaround Stalls for LayerZero's ZRO Token:** Initially recovering from Oct 6th drawdown, ZRO has faced renewed selling pressure since. A 10% dec

**Market Turnaround Stalls for LayerZero's ZRO Token**

In a stark turn of events, LayerZero's native token, ZRO, which initially rebounded following a market drawdown on October 6th, has succumbed to renewed selling pressure.

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**Market Correction and Recovery**

- Prior losses erased on October 6th, pushing holders back to breakeven

- Subsequent back-to-back losses across the broader market since

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**Technical Structure Shifts**

- Asset topped out around October 6th before a broader market correction

- Declined 54% over a twelve-week stretch, establishing bearish phase

- Recovery emerged in the week ending December 29th, extending for six weeks

- ZRO rallied 114%, fully reclaiming prior losses and restoring short-term bullish structure

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**Current Market Conditions**

- Over past two weeks, price has fallen 10%, signaling dominance of sellers

- Shift suggests distribution rather than consolidation

- Market participants increasingly positioning defensively

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**Token Unlock Pressure**

- Approximately 32.6 million ZRO tokens unlocked every month

- Recurring supply injection creates structural headwinds

- Latest unlock on February 20th likely amplified downside pressure

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**Holder Distribution**

- On-chain metrics show a steady contraction in holder count

- Current data places the holder count at approximately 1.01 million addresses

- Market capitalization has fallen 8.78% over the period

- $109.44 million has exited the asset in less than a month

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**Community Sentiment**

- Bullish conviction dropped sharply on February 20th, falling from 88% to 75%

- Historically, such confidence drawdowns correlate with extended price weakness

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**Spot Accumulation**

- Net Spot inflows reached $2.67 million in just over 48 hours

- More ZRO was purchased than sold on Spot markets during that period

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**Final Summary**

- Current market conditions for ZRO token are bearish due to unlock-driven supply, falling holder counts, and weakening sentiment

- Steady Spot accumulation suggests that not all investors have abandoned the asset—at least not yet

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