The post As LayerZero Gains Traction, Will ZRO Price Give Bullish Break? appeared first on Coinpedia Fintech News
Hidden on the second page of Coinmarketcap, LayerZero is making waves in the industry as an omnichannel interoperability protocol. As it enables secure messages to pass across blockchains, its Ultra-Light Nodes (ULNs) act as smart contract endpoints on each chain. However, the next link in the blockchain security development token, ZRO of Layerzero, is stuck in a price range. Will this range conclude on a bullish note this week?
LayerZero Shows Strong Growth with 55,000+ Users
Based on the layerzero scan, the user application has reached 55,206, with the total inflight messages surpassing the 13,000 mark. Amid this, Optimism ranks highest with 2,228, Arbitrum at 2nd with 1,920, and Polygon at 3rd with 1,663.
The top 10 source chains reveal Arbitrum, BNB, and Polygon in the lead, with the destination chains Arbitrum, Polygon, and BNB chain. Hence, based on the data from the layerzero scan, the top users are concentrated over the three chains.
Also, on a side note, the destination chain data revealed Avalanche as a top competitor and Status as a top competitor to the BNB chain.
LayerZero Price Consolidates As Network Grows
In the 4-hour chart, the ZRO price action reveals a recovery rally struggling to gain momentum. Following the 48% price drop in a fortnight, the ZRO price reverses to a double bottom from the 2.880 support level. The correction phase extends from $5.99 and hits the bottom support at $2.899.
The double-bottom reversal eventually leads to a sideways trend as the ZRO price struggles to find bullish momentum. Furthermore, the consolidation range is crucial at $3.23, with the overhead ceiling at $3.665.
Currently, the ZRO price action reveals a negative cycle ready to test the bottom support of the consolidation range and is down by 1.66% today.
Technical indicators:
RSI: Hitting the support level at multiple times, the daily 4-hour RSI line reveals a bullish divergence. Hence, the possibility of a bullish turnaround is increasing.
MACD: The MACD indicator fails to detect any underlying shift in bullish sentiments. The MACD and signal lines continue a declining trend, with the bearish histograms intensifying.
Will ZRO Price Give A Bullish Break?
Currently, the fate of the ZRO price is held within this consolidation range. A bullish breakout will test the $4.228 level or the 50% Fibonacci level. Meanwhile, the bearish breakdown will put additional stress at the $2.880 support level after breaching the $3 psychological mark.