On Wednesday, LayerZero (ZRO) resumed its upward movement to the level of $2. The shift was amidst marketwide weakness related to the current trade war between the US and the EU. The rally was also preceded by a large unlock event which introduced over 25 million tokens into circulation.
On Tuesday, ZRO took a new supply issue amounting to 25.71 million tokens. This has valued 6.36% of the total supply, and it was vested primarily among the private investors and core team. The consistent rebound indicates a consistent buying influence despite the growth in the supply in circulation.
Source: Tokenomist
Market data supports the strength of this recovery. According to the analysts, ZRO still trades in a bullish pattern in larger timeframes. The support levels are also seen to be holding, and traders continue operating even though the larger market is volatile.
ZRO Breakout Patterns Strengthen as Momentum Builds
Analyst CryptoBull highlighted that ZRO will be ready to break out of a declining triangle on the day chart. He explained that bulls would be able to aim at a 100-120% upside in case the actual price remained above the marked support and resistance range. He said that there is increased volume, which points to healthier momentum.
Source: X
Moreover, another analyst, Jonathan Carter, mentioned that ZRO has already confirmed a breakout of a falling wedge pattern on the three-day graph. He mentioned momentum building up and stated that the breakout structure is still intact. He had set target levels, which were at $2.40, $3.30, $4.80, and $7.00.
Source: X
Also Read: LayerZero ZRO Price Alert: Could Hit $5.20 Soon!
Open Interest Shows Strong Uptick
CoinGlass data shows that ZRO futures open interest rose 32.69% in the last 24 hours to $54.38 million. The funding rate climbed from -0.0353% to -0.0060%, suggesting reduced selling pressure from new positions.
Source: CoinGlass
ZRO Tests Key EMAs as Golden Cross Signals Strength
At the time of press, ZRO was trading up by 12.02%. It rose above the 200-day Exponential Moving Average at $1.784. The trend of EMA 50 is gradually moving toward the 100-day EMA. This progress suggests the prospects of Golden Cross in case the trend persists.
The MACD line moves beyond the signal line on the daily chart. The good histogram was stretched and had a positive constant upward trend. The Relative Strength Index was at 80. This represents positive buying pressure, but the token is also overbought.
Source: TradingView
The potential level of resistance is the October 13 close of $2.036. The region is connected to a psychological boundary at the $2 mark. Traders will monitor whether the ZRO test level passes through this resistance without any correction.
Support is at the 200-day EMA of $1.784 in case of weak momentum. The probability of profit-taking is high in the wake of the recent token unlock. The next support area may be the 100-day EMA at $1.557 in a deeper pullback.
Also Read: Chainlink Launches 24/5 U.S. Equities Data for DeFi Integration
