ZRO tumbles after being flagged by regulators | Credit: Veronica Cestari
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Key Takeaways
LayerZero has fallen below $2 after South Korea’s DAXA issued a cautionary alert.
ZRO trades in a descending channel while the NVT ratio signals weak on-chain activity.
ZRO’s price could slide to $1.48; however, a regulatory clearance could renew demand.
ZRO, the native token of the LayerZero project, faces the risk of a deeper correction after South Korea’s regulatory agency issued a cautionary alert against it.
At press time, the LayerZero price has already slipped below $2, and indicators suggest the pullback may not stop there.
In this analysis, CCN explains why LayerZero’s token could face further downside.
LayerZero Faces Uncertain Future
Last week, ZRO’s price printed higher highs, fueling optimism that the token could rally toward $3. However, momentum has since shifted.
Today, the altcoin has dropped to $1.97, signaling bullish strength has faded. South Korean exchange Upbit revealed one reason for this.
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According to South Korea’s Digital Asset eXchange Alliance (DAXA), ZRO and Stargate Finance (STG) have been flagged with a precautionary alert.
This move places the tokens under closer scrutiny and signals to local investors that they may carry higher risks — a warning that has already started weighing on market sentiment.
In some cases, a development like this leads to the delisting of cryptocurrency. For ZRO, the next step remains uncertain.
Looking at it from a technical perspective, the 4-hour chart shows that LayerZero’s price is trading inside a descending channel.
If the token remains trapped within this formation, it might struggle to break the resistance at $2.19.
In addition to this outlook, the Moving Average Convergence Divergence (MACD) has formed a bearish crossover, indicating that ZRO could drop to support at $1.71.
Red Flag Appears
From an on-chain perspective, Santiment data shows that LayerZero’s Network Value to Transaction (NVT) ratio has surged.
A rising NVT ratio indicates that the token’s market value grows faster than the transaction volume.
This imbalance suggests overvaluation or weakening utility, which can put additional downward pressure on price if on-chain activity doesn’t catch up with valuation.
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.
