- LayerZero (ZRO) will unlock 25 million tokens today.
- The ZRO price trades inside a descending wedge.
- Can ZRO break out despite the added selling pressure?
LayerZero (ZRO) fell by 80% after its all-time high in December 2024. While the price rallied in March 2025, it has lost most of its gains.
With a significant token unlock upcoming today, the ZRO price risks another breakdown.
Let’s examine a few charts and see if ZRO can begin a trend reversal despite the token unlock.
ZRO Token Unlock
Today, on July 20, ZRO will unlock 25,71 million tokens, 23.13% of the circulating supply.
This is the first token unlock since the June 20, 2024, token generation event.
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The event will kick off a linear vesting schedule that will continue for two years, during which 45 million tokens will be released monthly.
From the unlock, nearly 13 million tokens will go to the Strategic Partners, 10 million to Core Contributors, and 1.6 million will be repurchased.
Token unlocks of such a large percentage of the circulating supply often adversely affect the ZRO price, which has declined for 88 days.
ZRO Price Analysis
The daily time frame ZRO analysis shows that the price completed a rapid five-wave upward movement in March and has fallen since.
The decline resembles a corrective A-B-C structure (red), which might have ended since waves A and C have a 1:1.27 ratio.
Despite the bullish wave count, indicator readings do not confirm the trend reversal.
ZRO is also at the 0.854 Fibonacci retracement support level, the final one before the previous lows.
On the contrary, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.
As a result, while the ZRO price is at an ideal level for a bullish trend reversal, it is unclear if it will begin one.
Possible Bottom Ahead
The ZRO price analysis is bullish despite the significant token unlock.
However, the LayerZero price has to create a bottom formation at the current support level.
A daily close below $1.81 will put the bullish count at risk and could lead to new lows.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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