Home / Analysis / Crypto / Technical Analysis / ZRO Risks Falling to All-Time Lows as Kraken’s Defection to Chainlink Deepens a Crisis That Began With a $292M Exploit
ZRO price risks falling to new low | Credit: Hameem Sarwar
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Key Takeaways
LayerZero faces a crisis as major protocols migrate to Chainlink following the Lazarus-linked exploit, prompting over $2.5 billion in TVL to exit.
ZRO token price has dropped 28% over 30 days and is consolidating near $1.40, amid rising weak momentum.
Technical resistance remains high at the 20-day and 50-day EMAs, making a short-term bullish reversal unlikely.
LayerZero is dealing with a perfect storm, and it is getting worse.
What began with a $292 million exploit linked to the Lazarus Group has quietly evolved into something more damaging to ZRO’s long-term value proposition: a systematic departure of major protocols toward Chainlink.
So, what does this imply for the ZRO token price?
LayerZero Continues to Lose
The foundational blow to confidence in LayerZero began in April 2026 with a $292 million exploit on Kelp DAO, linked to the Lazarus Group.
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Kelp DAO: Transitioned off-chain operations after the exploit
Solv Protocol: ($700M TVL) migrating to Chainlink
Re.xyz: ($475M TVL) moving to Chainlink
At the time of writing, Kraken is the latest to go, announcing it is deprecating LayerZero for its wrapped Bitcoin product.
The exodus has resulted in over $2.5 billion in Total Value Locked (TVL) leaving LayerZero in May alone.
As expected, this has severely impacted confidence in the ZRO token. Over the last 30 days, the ZRO token price has fallen by 28%.
However, LayerZero Labs attempted to mitigate the crisis with a public apology on May 9, 2026, acknowledging “operational and communication failures” after multiple hacks.
The token has been consolidating around $1.40, suggesting weakening momentum. Meanwhile, the MVRV ratio suggests the market is still largely undervalued relative to previous realized gains.
Historically, ZRO has seen short-term bounces after prolonged consolidation. But the recent downtrend signals persistent selling pressure.
As it stands, any sustained breach below $1.35 could trigger a further decline toward the next psychological support levels. Notably, this could be around $1.20, coinciding with historically high realized losses for long-term holders.
ZRO Price Prediction: Lower
On the daily chart, the ZRO/USD is currently trading at $1.36 after a sustained downtrend over the past several months. Previously, the price had formed a bullish megaphone pattern.
However, the altcoin recently broke a key megaphone pattern, signaling that sellers remain dominant.
The breakdown from this wedge pattern has left the price struggling beneath the 20-day EMA at $1.49 and the 50-day EMA at $1.623, both of which act as immediate resistance levels.
This EMA configuration has formed a classic “death cross,” further confirming that the short- and mid-term trends remain bearish.
Technical analysis shows that the next major support for the ZRO token price lies near $1.20, which aligns with prior consolidation zones.
A break below this level could open the door for a retest of the multi-month low at $1.12.
On the upside, recovery faces significant obstacles. Immediate resistance is expected at the 20-day EMA, followed by the 50-day EMA, and the Fibonacci retracement levels at $1.73, $1.90, and $2.07.
Overcoming these barriers would be critical for any bullish reversal, yet the overall momentum remains firmly tilted toward sellers.
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.
