LayerZero Price Forecast: ZRO Could Rally to $6 if the Bulls Break the $5.18 Resistance Key
The LayerZero Price has plummeted by 4% in the past 24 hours to trade at $4.97 during the European trading session. Notably, its trading volume has plunged 45% to $332 million, suggesting a fall in market activity among traders and investors.
The sharp decline comes despite LayerZero going live on zk.Link. Zk.Link is an aggregated Layer 3 zkEVM network that unifies liquidity on Ethereum and its L2s. The project aims to provide an EVM-compatible platform with ZKPs for fast and simple smart contract development.
LayerZero is live on @zkLinkNova, an aggregated Layer 3 zkEVM network that unifies liquidity on Ethereum and its L2s. It provides an EVM-compatible platform with ZKPs for fast and simple smart contract development.
Developers on Nova can now seamlessly expand their application… pic.twitter.com/urittLvubu
— LayerZero Foundation (@LayerZero_Fndn) July 23, 2024
On the other hand, traders and investors are giving mixed reactions concerning the LayerZero price. A well-known crypto enthusiast, AltcoinSherpa, is concerned that the coin’s price will follow a similar pattern to its previous all-time high. However, it is still bullish on the token despite the FOMO in the market.
$ZRO I am bullish on this but I'm a bit scared it's going to mimic the same price action that $ATH just had: Strong bullish consolidation and building a base followed by a big move up and more chop.
We are seeing ATH go back down to the trading range. Will ZRO do the same? pic.twitter.com/u4LdunAknp
— Altcoin Sherpa (@AltcoinSherpa) July 22, 2024
LayerZero Price Statistics
- LayerZero price:$4.97
- Market cap: $546 Million.
- Trading volume: $332 Million
- Circulating supply:110 million
- Total supply:1 billion
Technical Indicators Emerge Bearish as the Bears Dominate the ZRO Market
The LayerZero price kicked out a rally on July 20 after a prolonged consolidation between the $3.60 limit/support and $4.17 limit/resistance. However, there has been a push and pull between the bulls and bears in the market as they struggle to take control of the price. The bulls have faced resistance at $5.58, forcing them to retrace to $4.98 slightly.
Based on the technical outlook, the ZRO token trades well above the 200-day Simple Moving Average (blue). In this scenario, the $4.41 acts as its immediate support key in the LayerZero market. However, the bulls have faced resistance at $5.18, which coincides with the 50-day SMA(green), suppressing the bulls from breaking out.
Moreover, the Relative Strength Index (RSI) has its strength at 37, reinforcing the bearish outlook. The RSI has hurtled from the 50-mean level towards the oversold zone, suggesting dwindling buyer momentum. However, if the bulls capitalize on the oversold conditions of the token, they could initiate a buyback campaign that could see the ZRO token rally above the $5.18 technical barrier.
On the other hand, the Moving Average Convergence Divergence (blue) worsens the outlook as it crosses below the signal line (orange band). Moreover, it has hurtled below the neutral line (0.00) towards the negative territory, tilting the odds towards the sellers. The cross below the signal line shifts the momentum from bullish to bearish in the ZRO market. Traders and investors often sell more unless the MACD signal changes.
Will the Bulls Initiate a Recovery?
In the one-hour chart analysis, the odds tilt towards the seller, with support from the technical indicators. If the sellers keep up the selling appetite, the ZRO price could breach the $4.92 support level. In such a scenario, the ZRO token could drop, retesting the $4.41 psychological level that coincides with the 200-day SMA.
Conversely, if the bulls step into the market and capitalize on the RSI and MACD, they could initiate a rally, breaking above the aforementioned barrier. In such a case, the ZRO price could surge to around $5.60. In a highly bullish case, the bulls might flip the 50-day SMA into support, causing the ZRO token to reach around $6 in the coming days.
Charles Kibue
Charles Kibue is a cryptocurrency researcher and writer with published works on Crypto2Community and a range of other sites. He has also worked as a technical writer, researching NFTs and crypto projects. Charles is an English Literature graduate residing in Kenya. He possesses additional expertise in market analysis and offers accurate and reliable insights, staying up-to-date with the latest developments in the crypto industry. Beyond his professional pursuits, Charles enjoys hiking and horse riding in his leisure time.
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