LayerZero’s ZRO Token Surges 36% Weekly, Eyes $4.00 Resistance Level

LayerZero’s ZRO token has experienced a remarkable 36% surge in the past week, driven by a positive market sentiment ignited by Bitcoin’s latest rebound. CoinMarketCap data reveals that Bitcoin soared beyond $63.7K yesterday, a notable jump from the previous week’s low of $59.9K, before finding stability just above the $62.9K threshold.

As of press time, ZRO is trading at $3.82, marking an 11.09% increase in the past 24 hours. This surge has boosted ZRO’s market capitalization by 11.13% to $420,426,035, placing it at the 140th rank. The 24-hour trading volume has also climbed 15.93%, reaching $495.39 million.

Source: CoinMarketCap

Despite these gains, ZRO still shows a 5.89% decline on its monthly chart, indicating some lingering bearish sentiment. However, if the bullish momentum persists and ZRO surpasses the $4.00 intraday resistance level, it could potentially reverse the bearish trend.

Is a Potential Breakout on the Horizon?

Following its initial debut, LayerZero’s price underwent a notable pullback, dropping from its peak of $4.87 to the $2.46 support level, per TradingView data. Nevertheless, ZRO enthusiasts successfully rallied the token from this support, driving it up to the $4.00 resistance, shaping a bullish rounding bottom pattern.

Source: TradingView

Currently, ZRO stands strong, trading well above the 20-day and 50-day Simple Moving Averages (SMAs), signaling a prolonged bullish trend. Traders are now focused on the $2.8 and $3.28 levels as crucial support zones. Should these supports remain intact, an upward break past the $4.00 mark could be on the horizon.

Technically speaking, the MACD’s histogram bars are shrinking, hinting at a potential slowdown in bullish momentum. This could result in a consolidation phase or a slight pullback before another attempt to breach the $4.00 resistance.

Source: TradingView

Similarly, the Relative Strength Index sits in the overbought territory at 72.67 but is starting to trend downward. This suggests that sellers might be locking in profits, potentially driving the price back down to the $3.28 support level, which coincides with the 20-day SMA.

However, should the bulls leverage the rounding bottom pattern, LayerZero’s price could skyrocket, targeting levels just above its all-time high.