Over the past 24 hours, LayerZero regain its upward footing after falling to $1.7. The altcoin bounced back, flipped $2, and rose to $2.19 before retracing.
As of this writing, LayerZero was trading around $2.118, up 11.5% on the daily charts. This price hike was backed by a 45% jump in Spot trading volume.
LayerZero buyers retake the market
Two days ago, LayerZero made notable gains after its cross-chain dominance drew renewed market attention. This price uptick, however, proved short-lived as the altcoin retraced to $1.7.
LayerZero [ZRO] primarily rallied because of the higher cross-chain transfer volume, but it faced higher profit-taking as a result.
Now, ZRO has seen a slowdown in profit-taking as well. In fact, after six days, exchange outflows finally outpaced inflows.
Over the past 24 hours, for example, Spot netflow fell 156% to -$1.03 million, marking a reversal from the $1.4 million recorded three days ago. The negative Spot netflow suggested that more tokens were leaving exchanges than entering them.
Demand for the protocol has continued to rise. As a result, fees generated by the protocol have more than doubled.
Over the past 30 days, the network’s fees rose from $147K to $301K, according to Mithridates. Higher fees often translate to greater revenue, which in turn strengthens fundamentals.
Concerns around the token unlock remain
Although some short-term concerns have cooled and market usage is picking up, investors are worried about the long-term outlook.
As such, community chatter has raised concerns about the upcoming token unlocks. In two weeks, an additional $50 million in tokens will be released.
These token unlocks will likely add more pressure to the asset. Additional selling pressure could weaken the market’s long-term outlook, particularly the trend’s sustainability.
Can ZRO finally flip $2.2?
Currently, LayerZero sits on a strong upward trajectory, continuously forming higher lows. In fact, the DMI Modified indicator confirms this view.
This momentum indicator has been positive for two weeks and is currently around 23. At these levels, it indicates that the altcoin is making higher highs more frequently.
Often, this setup has preceded the continuation of the upward trend. Therefore, if demand holds, LayerZero could hold $2, finally flip $2.2, and target a move above $2.5. However, if it fails to close above $2.2, ZRO could drop back to $1.7.
Final Summary
- LayerZero surged 11%, successfully held $2, and rose to $2.19 for the first time since March
- ZRO surged amid strengthening buy-side activity and increased protocol usage.