LayerZero (ZRO) Price Drops 14% After Rejection at Triangle Resistance
ZRO price makes a decline after recent rejection, with chart analysis pointing at near term downside continuations.
Key Takeaways
- Consolidation in a symmetrical triangle indicates a potential breakout soon.
- The final leg in wave E suggests an imminent trend direction.
- RSI signals indecision, awaiting confirmation.
LayerZero (ZRO) has been consolidating within a symmetrical triangle pattern since peaking at $5.64 in July 2024.
This structure follows a corrective ABCDE wave. The price is currently trading near $3.50, and the Relative Strength Index (RSI) reflects neutral momentum.
As wave E nears completion, a breakout is expected, with the direction determining whether the price targets $5.50 or falls toward $2.50-$2.80.
ZRO Price Analysis
The price of ZRO on the daily chart shows a prolonged symmetrical triangle pattern forming since the July 2024 high.
The price entered a corrective phase following a sharp, impulsive five-wave structure that peaked at $5.64 in late July.
This correction unfolded into an ABCDE structure within the symmetrical triangle, and ZRO is currently trading around $3.50.
The RSI reflects neutral momentum, suggesting indecision among market participants as the price coils within this pattern.
The symmetrical triangle could be interpreted as a consolidation phase after the initial runup. Once it ends, more upsides should be seen, but a breakout direction will further validate this assumption.
The current wave E of the triangle is nearing completion, indicating that a breakout may soon occur. However, another retest of the ascending support is likely.
ZRO could continue declining from the current levels as the price dropped 14% after its latest interaction with the triangle’s resistance on Nov. 11.
The bullish scenario projects a breakout toward $5.50 or higher as the next target, aligning with the continuation of the prior uptrend.
Conversely, a breakdown below the triangle support could send the price to retest the $2.50-$2.80 range, a crucial support zone established in mid-2024.
Key Observations:
Symmetrical Triangle Formation: The corrective structure indicates consolidation, setting up for a potential breakout.
Wave E Near Completion: The final leg of the triangle suggests a breakout is imminent.
Neutral RSI: The momentum remains balanced, and we await confirmation of the next trend direction.
ZRO Price Prediction
The hourly chart for ZRO reveals that the price is nearing the completion of a corrective ABC wave within a symmetrical triangle.
Following a rally to $3.86 (wave B high), ZRO is likely developing its wave C, with the price currently trading at $3.49. The RSI is near the oversold zone but still has more room before it enters it.
Projecting the target at the same length as the A wave for the C wave, we can see that it perfectly aligns with the ascending support line at $3.14, whose interaction is awaited. Should we see a bounce causing the reversal to a new uptrend, our projection of the upcoming upward breakout will be one step closer to getting validated.
However, if the price continues below $3.14, a breakout to the downside could raise questions about the bullish outlook.
Key Levels to Watch
- Immediate Resistance: $3.57 (0.382 Fibonacci of wave C) and $3.85 (wave B high).
- Support Levels: $3.40 (0.618 Fibonacci retracement), $3.15 (1.0 extension of wave A), and $2.98 (1.272 Fibonacci extension).
- Upside Target: $4.20 (projected breakout target) and $4.50 (continuation of bullish momentum).
A breakout above $3.85 would confirm the end of the correction, potentially leading to an impulsive move targeting $4.20-$4.50. Conversely, a failure to hold above $3.40 could result in a steeper decline toward $3.15, delaying a bullish continuation.
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