ZRO price action strengthens on volume as network activity spikes | Credit: Veronica Cestari
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Key Takeaways
ZRO surged 40% this week as supply unlock fears faded and buyers absorbed the dilution.
Rising volume, EMAs, and indicators support a strong technical breakout above $2.
On-chain data shows growing user activity, keeping $3.40 upside targets in play.
ZRO, the native token of the LayerZero project, is one of the top gainers this week.
Over the last seven days, LayerZero’s price has increased by 40%, and indicators suggest it could extend the rally.
At the time of writing, the altcoin wobbles around $2.35. In this analysis, CCN reveals what could be next for the ZRO in the short term.
LayerZero Leaves Token Unlock Pressure Behind
The first test came on Jan. 20, when LayerZero unlocked 25.71 million ZRO, about 6.36% of the circulating supply.
Usually, that size of release triggers what we call the “unlock dump.”
Instead, the market treated it like an event to clear weak hands. Dip buyers stepped in quickly.
Next, buyback optics helped sentiment. Reports have pointed to a $10 million ZRO buyback and a broader history of repurchases tied to token value capture.
Even when a buyback is small relative to market cap, it changes psychology. It tells traders the team is willing to defend dilution narratives.
It also gives bulls a clearer story to sell: “supply unlocks, but the foundation supports price.”
Then came the ecosystem catalyst. Starknet revealed that it connects to a wide range of ecosystems via LayerZero’s architecture, with Stargate serving as a key interface for omnichain transfers.
“LayerZero is now live on Starknet Mainnet. A massive milestone for Starknet’s interoperability, connecting the network to 150+ ecosystems and unlocking omnichain liquidity at scale.” The project revealed.
Finally, the market has a date to trade. Interestingly, LayerZero accounts teased “2.10.26”, and traders immediately turned it into a countdown, suggesting that the project might have a big announcement in February.
ZRO Price Breaches Key Resistance
From a technical perspective, the 4-hour chart shows that ZRO’s price extended its bullish breakout, surging above $2.30 after clearing a key consolidation range near $1.80.
The rally followed a golden cross earlier this month, with price now trading well above both the 20-EMA (blue) and 50-EMA (yellow), signaling strong short-term trend strength.
Momentum accelerated after the breakout, supported by rising volume. As such, LayerZero’s price is now testing the upper end of the measured move, around $2.35 to $2.40.
Therefore, as long as ZRO holds above the former resistance-turned-support near $1.80, the structure remains bullish.
Meanwhile, a pullback into that zone would likely be viewed as a continuation setup rather than a trend reversal at this stage.
Network Activity Rises, Whales Increase Holdings
From an on-chain perspective, ZRO is seeing a strong confirmation of its recent price breakout, with price accelerating above $2.30 alongside a surge in daily active addresses.
The expanding price Daily Active Addresses (DAA) divergence indicates network usage is rising faster than price, a pattern that typically reflects organic demand.
This spike in activity coincides with ZRO’s vertical move, reinforcing the rally’s strength and reducing the likelihood of an immediate exhaustion move.
As long as user growth remains elevated, the current uptrend looks fundamentally supported, with on-chain momentum now aligning with the bullish technical structure.
Besides that, LayerZero is also seeing clear accumulation from larger holders, with on-chain data showing a steady rise in the number of addresses holding at least 10,000 tokens.
Over the past month, this cohort has trended higher in tandem with price, accelerating notably as ZRO’s price pushed above $2.
The rise between price and large-balance addresses suggests the rally is being supported by sustained accumulation. This behavior typically reflects growing conviction among higher-capital participants.
Also, it adds a fundamental layer of support to the recent technical breakout. Should this trend persist, LayerZero’s price will likely breach $3.
ZRO Price Prediction: Higher Targets
What could come next for ZRO now? Looking at the daily chart, LayerZero’s price rallied after clearing the former resistance band between $1.90 and $2.
The move confirms a trend reversal from the multi-month downtrend, as it rose above the upper trendline of a falling wedge.
As a result, ZRO’s price now sits above key Fibonacci retracement levels and the prior descending structure.
A notable increase in buying pressure is reinforcing momentum. At the time of writing, the Chaikin Money Flow (CMF) has surged to around 0.45, marking a bullish divergence from earlier consolidation.
At the same time, the Moving Average Convergence Divergence (MACD) has flipped bullish, with rising histogram bars supporting trend continuation.
As long as ZRO holds above $2.00, the breakout structure remains intact, with upside extension toward $2.60.
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.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
