LayerZero (ZRO) is attracting market attention, according to a revelation disclosed today by market analyst Lookonchain. As per the analyst, a whale recognized to be WLFI (World Liberty Financial) advisor, Cryptogle, opened a 5x long on 347,280 ZRO tokens worth $795,000 early today, betting on price increases for the cryptocurrency that powers LayerZero’s interoperability protocol.
The whale’s transaction shows strong confidence in the asset, as the analyst’s data further indicates that the investor spent $50,000 to buy 33,411 ZRO tokens valued at $75,500 two weeks ago.
What This Whale Knows About LayerZero
The investor’s move to open a long position on LayerZero signals whales’ enthusiasm for the ZRO. He shows a strong belief that the asset’s price is primed to witness a surge, also indicated by his decision to buy massive amounts of ZRO tokens in the past few weeks.
Today, ZRO experienced a 15.7% jump registered over the past 24 hours, making its price currently stand at $2.18. The asset has also been up 38.6% and 79.5% over the past week and month, respectively, reflecting its uptrend. The investor’s transaction points out that whales are confident that ZRO is set to experience further rises.
The price of LayerZero has been showing strong strength in the times of stagnation currently noticed in the larger cryptocurrency market, a picture that gives investors confidence in ZRO. The wider crypto market is taking a pause as macroeconomic uncertainties triggered by renewed trade tariff tensions have adversely impactedthe movement of most crypto assets.
As a consequence, Bitcoin and Ethereum are currently trading at $89,414 and $2,940, respectively, below their $90,000 and $3,000 crucial psychological levels. Other multiple assets also experience similar declines. However, LayerZero is displaying a different picture as it has been one of the top crypto gainers in the market. While its impressive trajectory gives traders optimism, questions arise about what’s causing its price surge.
Despite the recent unlock event yesterday (on Thursday, January 22) when LayerZero released 25.71 million ZRO tokens, equivalent to 6.36% of the asset supply, ZRO prices remained steadfast, unaffected by the token dilution. The presence of strong buying pressure absorbed the fresh supply release of the unlocked tokens. The uptrend shows that the intense buying pressure is at a strong, high level.
How Long Will ZRO Sustain Its Uptrend?
Questions now remain whether LayerZero can sustain its market recovery rally. The price behavior shows strong whale accumulation, enabling the price to rise while volatility remains under control. ZRO’s daily chart displays an ascending parallel channel indicating a bullish trend. The token’s price currently stands near the upper limit of the ascending parallel channel, a level that has consistently acted as a strong resistance level.
ZRO appears to have reached the top of the channel, which historically signals caution, pointing out that a potential bearish divergence could be coming. The area ZRO currently tests functions as a make-or-break zone. Historically, when a price climbs to the top of the ascending parallel channel, it indicates caution, as prices tend to reverse when it reaches this peak.
