ZRO Price Rises 20% Following LayerZero Labs' $10M Acquisition, Eyes $2 Resistance

The ZRO price has experienced a significant surge of 20% within the last 24 hours, recovering from a recent low after LayerZero Labs made a substantial $10 million investment. The price is now testing important resistance levels at $2, indicating potential for further upward movement.

Key Takeaways

ZRO price increased by 20% after LayerZero Labs purchased $10 million worth of the token.
The price rebounded from a low of $1.28 to reach an intraday high of $1.81.
Key resistance levels are at $1.77–$1.82, with potential for a breakout above $2.
The recent crash was partly due to a token unlock of 25.71 million ZRO.
The bullish sentiment is bolstered by LayerZero Labs' assertion that ZRO is a mispriced asset.

ZRO price surges 20% after LayerZero Labs buys $10M, eyes $2 resistance - 1

zro price

ZRO Price Movement and Future Outlook

In just 24 hours, the ZRO price surged 20%, rebounding from a recent low established during the market downturn on October 10. This recovery saw the price rise from $1.28 to an impressive intraday peak of $1.81. Currently, ZRO is testing a critical short-term resistance level between $1.77 and $1.82, a significant support zone prior to the October crash.

Despite this encouraging rise, the 21 Exponential Moving Average (EMA) is still below the 50 EMA, indicating a bearish crossover. This suggests that the overall market trend remains negative. Nevertheless, with ZRO currently being tested at the 50 EMA, a breakout above this indicator could signal a potential bullish crossover in the near future.

If the ZRO price manages to close above $1.82 in the coming sessions, it will signify a shift from resistance to support in the $1.77–$1.82 range. This would pave the way for a possible retest of the next resistance levels at $2–$2.10, followed by $2.60.

Understanding the Crash and Rebound

The recent decline to the $1.30 level can be attributed to the prevailing negative sentiment in the cryptocurrency market, along with the impact of a large token unlock. On October 20, 25.71 million ZRO tokens were unlocked, valued at about $44.22 million, which represents roughly 7.9% of the total circulating supply. This release initially did not affect the price drastically, but as market sentiment weakened, the price eventually dropped.

However, the notable rebound was primarily driven by LayerZero Labs' announcement of its $10 million purchase of ZRO tokens from the open market. In their communication on social media platform X, LayerZero Labs expressed their belief that ZRO is currently one of the most undervalued assets globally.

“We at LayerZero Labs believe ZRO is currently one of the most mispriced assets in the world” — LayerZero Labs

The recent uptick in ZRO’s price illustrates how investor confidence can be restored amid market volatility, potentially leading to a new upward trend for this cryptocurrency.