DON'T SHORT ZRO: THE BIGGEST SQUEEZE OF THE WEEK IS BREWING
Technically, ZRO appears weak after failing to break higher, creating a tempting short setup that is drawing in sellers. The price action looks poised for a breakdown.
However, the on-chain data paints a completely different picture. This is a classic short squeeze scenario where aggressive shorting by derivatives traders has caused negative funding, yet strong spot market buying continues to absorb all the pressure. The bears are walking into a trap.
Expect an explosive move upward as shorts are forced to cover. A break of the local 1.36 resistance will trigger the main squeeze. This bullish thesis is only invalidated on a loss of the 1.27 support zone.
ZROUSDT
Perp
1.4399
+2.28%