LayerZero surges after absorbing 25 million unlock tokens, futures contracts attract investors

LayerZero (ZRO) is maintaining a positive recovery momentum, approaching the $2 mark during Wednesday’s trading session, despite the overall cryptocurrency market still facing pressure from US-EU trade tensions. Notably, the rally of this cross-chain messaging token remains quite solid even after the market absorbed a large supply influx, with over 25 million ZRO unlocked on Tuesday. The optimism of retail investors has contributed to stirring the derivatives market, pushing the Open Interest (OI) of the ZRO futures contract up by more than 30% in just 24 hours, nearing the $55 million threshold.

Short-term demand for LayerZero exceeds the 25 million token unlock

Latest data shows that 25.71 million ZRO tokens, equivalent to 6.36% of the total supply, were unlocked on Tuesday, mainly allocated to private investors and the core team. Despite the significant increase in circulating supply, ZRO’s price remains relatively stable in its recovery, indicating that market demand is still strong enough to absorb potential selling pressure.

Token unlock data for ZRO | Source: TokenomistIn the derivatives segment, the outlook is also positive. The open interest of ZRO futures contracts surged 32% within 24 hours, reaching $54.38 million, reflecting a notable increase in open positions. Meanwhile, the funding rate improved to -0.0060% from -0.0353% previously, indicating that short-selling sentiment from new positions is gradually cooling down.

Derivatives data for ZRO | Source: CoinGlass## LayerZero extends recovery on the 200-day EMA

As of Thursday, LayerZero’s price increased by about 8%, breaking above the 200-day exponential moving average (EMA) at $1.784. Notably, the 50-day EMA is trending upward and approaching the 100-day EMA, opening the possibility of forming a “golden cross” in the short term if the current upward momentum continues.

On the daily timeframe, the MACD indicator signals a positive trend as the MACD line crosses above the signal line, with the histogram remaining in positive territory and expanding, reflecting strengthening bullish momentum. At the same time, the RSI jumps to the 80 level and enters overbought territory, indicating strong buying pressure but also warning of a potential technical correction.

Daily ZRO/USDT chart | Source: TradingViewIn a bullish scenario, if ZRO maintains its upward trend, the closing price on 10/13 around $2.036 is likely to become a significant resistance zone, close to the key psychological level of $2.

Conversely, if the market weakens, the 200-day EMA at $1.784 could serve as the nearest support zone. The risk of a correction still exists, especially as the token unlock activity increases circulating supply and triggers profit-taking pressure. In that case, a deeper support zone is identified around the 100-day EMA, at approximately $1.557.

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