Is it Too Late to Buy ZRO? LayerZero Price Plunges 7% as Bulls Target to Break Above $3.90 Resistance

LayerZero (ZRO) is trading below the bull market indicators, suggesting that the buying appetite is dwindling in the market. This bearish outlook is visible, with ZRO plummeting by 7% over the last 24 hours to trade at $3.78 on Friday. Moreover, its trading volume in the same period has dived 17% to $ 268 million, suggesting a recent fall in market activity.

Despite the sharp decline, bullish sentiment is building around ZRO tokens, with some enthusiasts believing they can get a double return during the next bull run.

$ZRO He hit the blue line hard as planned in the pattern, but I think this is the final cumulative step for the next upward move, so today will be very important for this chart as there is nothing left.

Watch what will happen soon 👀⏳ https://t.co/KyK12E15wf pic.twitter.com/aw8oNDgfpf

— TA1 (@A1Trad) July 12, 2024

Meanwhile, Mode has integrated LayerZero to bring MODE omnichain. MODE is the native token of Mode Network and is now an OFT available on various platforms, including Ethereum, Optimism, and Base. The token is used for governance, campaigns, grants, and overall ecosystem growth of the Mode Protocol.

.@modenetwork has further integrated LayerZero to bring MODE omnichain.

MODE, the native token of Mode Network, is now an OFT available on Mode, Ethereum, Optimism, and Base. The token is used for governance, campaigns, grants, and overall ecosystem growth of the Mode Protocol. https://t.co/BZS99wUjVk pic.twitter.com/5ITebME510

— LayerZero Labs (@LayerZero_Labs) July 11, 2024

On the other hand, the LayerZero token price is inching closer to its all-time high of $4.58, recorded on June 20, before slumping to $2.51 a week later. This led to the token shedding about shedding $600 million from its market capitalization. However, the ZRO bulls seem to be growing hind wings, and this could potentially trigger a rally above the $4.58 ATH. 

LayerZero Statistical Data

Based on Coinmarketcap data:

• ZRO price now – $3.78
• ZRO market cap – $416 million
• ZRO total supply – 1 billion
• ZRO circulating supply – 110 million 
• ZRO ranking – #135

The Layerzero price is trading with a bearish outlook within the confines of a rising wedge channel. To start with, the Relative Strength Index (RSI) is subdued below the 50-mean level, tilting the odds towards the sellers. However, the RSI has rebounded from the 30-oversold region, currently at 46, hurtling towards the 50-mean threshold. Increased buying appetite could see the RSI jump above the mean level toward the 70-overbought zone, invalidating the bearish stance.

In the same way, the ZRO token trades below both the 50-day and 200-day Simple Moving Averages (SMA), validating the bearish outlook. The $3.8232 and $3.9041 have curtailed significant price movement to the north. This leaves ZRO with only a few options, like trimming gains and searching for a viable support area.

The Moving Average Convergence Divergence (MACD) indicator reveals that a bullish outcome is highly likely despite the resistance encountered at $3.8232. Traders should consider rallying behind ZRO, especially with the momentum indicator crossing above the signal line hurtling toward the neutral 0.000 area.

LayerZero Price Outlook

In the one-hour chart analysis, the odds favor the downside. However, the bulls are increasing their appetite, which could trigger a rally if they break above the resistance keys. If a strong tailwind builds behind ZRO, the token can obliterate the next critical resistance, as shown by the 200-day SMA(blue) at $3.82.

Note that gains above this price point could begin a meaningful uptrend. This could be validated starting with a step above the 100-day SMA (green) at $3.90 ahead of a more significant breakout to $5.00. Conversely, if the bears exert pressure at this level, they might breach the lower trendline of the rising wedge. This could drive the Layerzero price down to retest the $3.54 mark.