ZRO is approaching $2 after buyers reclaimed earlier resistance, while LayerZero’s latest announcements give investors more to assess beyond the token’s sharp recovery in price.
At roughly $1.85 on Kraken’s daily chart, ZRO was up about 6.1% against the previous close at 21:02 UTC on October 1, with the session still underway.
ZRO has recovered its August trading ceiling
After months of declines, ZRO formed a summer base and rebounded in August. September’s pullback stopped above that base, and the subsequent rally cleared the August peak, establishing the higher low and higher high associated with an emerging uptrend.
The break above $1.20-$1.30 carried price through both the August resistance area and the 200sma, now near $1.248. Holding this zone during a future retreat would help preserve the breakout that started the latest advance.
The same rally has lifted ZRO above all three moving averages. The 50sma is turning higher, although it remains below the 200sma, which is still falling. That mixed alignment reflects how recent the improvement is relative to the preceding decline.
Closer to the current price, buyers have already responded inside $1.55-$1.65. The October 1 candle reached $1.622 before rebounding toward $1.85, making this the first area to watch if selling returns. A daily close above the zone would strengthen the evidence that it is holding.
ZRO now approaches $1.90-$2.00, where it traded before April’s sharp decline. A daily close above $2, followed by a pullback that holds the area, would provide stronger evidence of a breakout. The next visible historical trading region sits around $2.20-$2.40.
ZRO approaches that resistance with its 14-period RSI near 77.9, reflecting the rapid advance. Readings above 70 are commonly described as overbought, but momentum can remain elevated during a strong rally. A falling RSI would become more concerning if price also lost reclaimed support.
If resistance holds, the depth of the pullback would help distinguish consolidation from a weakening rally:
- Holding $1.55-$1.65: Buyers would retain the latest reclaimed area, leaving the recovery intact below resistance.
- Losing that zone and failing to recover it: Attention would shift toward the earlier breakout at $1.20-$1.30 and the nearby 200sma.
Below that breakout area, a deeper decline would approach the rising blue trendline near $1.10 and the 50sma around $1.14, followed by the 100sma near $0.99. The diagonal moves higher with time, so its position needs to be checked against the date of any later test.
Anchorage and ATLAS broaden LayerZero’s plans
LayerZero’s September announcements offer possible context for that recovery. The project helps applications on different blockchains communicate, allowing stablecoin issuers to coordinate transfers of a token made available across several networks.
On September 21, LayerZero announced that Anchorage Digital had selected it as the preferred provider of cross-chain connectivity for its stablecoin issuance platform. USAT was identified as the first Anchorage-issued stablecoin to launch using LayerZero’s OFT token standard.
LayerZero followed that announcement with an ATLAS performance demonstration on September 28. ATLAS is intended to provide the infrastructure behind trading venues that operate their own customer-facing services. Its proposed role includes matching orders and settling trades, extending LayerZero’s plans beyond transferring assets between blockchains.
How that activity could create demand for ZRO
Under the announced ATLAS design, trading venues can stake ZRO to qualify for higher fee rebates. After those rebates, 75% of the remaining fees would fund purchases and burns of ZRO. For example, a $40 venue rebate on $100 in trading fees would leave $60, of which $45 would go toward buying and burning the token.
That mechanism depends on trading activity generating fees after launch. LayerZero currently describes ATLAS as launching later this year, so its potential token purchases remain separate from the buybacks already taking place through Stargate revenue.
The Foundation’s dashboard records roughly 2.38 million ZRO purchased cumulatively through revenue-funded buybacks and identifies Stargate revenue buying as active. Its latest monthly entry covers August, so it cannot establish whether fresh purchases supported September’s rally. The separate protocol fee switch remains inactive.
Buybacks must also be weighed against tokens becoming available through vesting. Under the Foundation’s published allocation schedule, strategic partners and contributors receive monthly unlocks after an initial lockup. Those releases give recipients additional tokens they could sell, potentially offsetting some of the demand created by purchases.
After launch, trading volumes and the fees left after venue rebates would let investors estimate how much buying the ATLAS model can fund. Comparing that estimate with published purchase and burn transactions would show whether the announced mechanism is operating as designed.
This article is for informational purposes only and does not constitute investment advice. Technical levels are approximate and do not guarantee future price movements.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP.
Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem.
To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem.
His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
Be the first to comment