Key Takeaways
ZRO, the native of the omnichain interoperability protocol LayerZero, has broken free from the downtrend it experienced since last December. In the last seven days, ZRO’s price is up 75%.
The explosive rally comes as buying pressure surges, with rising volume reinforcing the breakout. However, despite the strengthening bullish bias, the token still faces multiple overhead resistance levels.
Despite these potential hurdles, this analysis suggests that LayerZero’s price could be in line for further upside.
LayerZero Breaks Key Resistance
In December, LayerZero’s price surged to $7.53, marking a new all-time high. But since that peak, the cryptocurrency struggled, eventually succumbing to a correction that dragged it down to $1.58 on March 10.
The price decline forced ZRO to form a descending channel on the daily chart. However, bulls appeared to have defended the price from sliding below the $1.58 support last week.
But it did not end there. After defending the support, LayerZero’s price broke above the upper descending line and resistance at $2.27.
As a result, the altcoin has been able to retest the $3 mark. Following the price increase, CCN noticed that the Relative Strength Index (RSI) reading had crossed above the 50.00 midpoint.
The rise in the RSI rating indicates increasing bullish momentum. If sustained, ZRO’s price might climb closer to its all-time high.
Whales Add Pressure to the Upswing
From an on-chain perspective, Santiment data reveals that whales also played a huge role in the spike.
According to the analytic platform, addresses holding 10 million to 100 million ZRO collectively held 143 million tokens on March 9.
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Today, that figure has risen to 153 million, meaning large holders have accumulated an additional 10 million tokens—an investment worth approximately $30 million at the current price.
If these key stakeholders continue their buying spree, LayerZero’s price rally may not stall at $3. Instead, the altcoin could push significantly higher.
ZRO Price Eyes Rally to $4
LayerZero’s price action from the 4-hour chart also agrees that the value might continue to rise. As seen below, ZRO trades in an ascending channel, forming higher and higher lows.
Amid this technical setup, the Bull Bear Power (BBP) climbed to the positive region, indicating that bulls are in control. Besides that, the Awesome Oscillator (AO) reading has climbed higher.
The AO measures momentum using recent and historic price movements. Therefore, the current reading indicates bullish momentum, which could be vital in driving LayerZero’s price higher.
Should this trend continue, ZRO’s value might rise to $4.33 at the 0.382 Fibonacci level. If buying pressure increases, the altcoin might break $5.
However, if the token gets overbought and sellers outpace buying volume, this forecast might not become a reality.
In that instance, ZRO’s price might drop to $2.47.
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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