LayerZero defies altcoin market slump as traders eye $1.60 support shelf – What’s next?
ZRO has rebounded well from an important support level and could continue the uptrend from September.
LayerZero [ZRO] has rallied 8.25% in the past 24 hours, while the rest of the altcoin market mostly saw flat or bearish price action. The short-term gains came alongside increased speculative activity.
Coinalyze data showed a 9.8% uptick in OI, and the spot CVD has also climbed higher since Friday, the 30th of October. Yet, the daily trading volume has slipped by 41.3%, according to CoinMarketCap data.
In other news, Canadian financial startup Loon Finance announced that it had selected LayerZero’s OFT Standard as the interoperability solution to its Canadian dollar-backed stablecoin, CADC.
Since the OFT standard fulfilled the three critical requirements of security, liquidity, and compliance control for the institutional-caliber multi-chain operator, LayerZero was chosen to build a solution, the announcement read.
ZRO rebounds strongly from the key Fibonacci retracement level
Since making the local low of $1.41 on Friday, the 30th of October, ZRO has rallied by 31.8%. The sizeable gains came alongside a lackluster performance from most of the top crypto assets, which made the LayerZero token stand out more.
Not just the short-term gains, but where they came from, was also of interest. The 1-day price structure of the altcoin was bullish, but it had been in a retracement phase for most of October.
Based on the rally from $0.918 to $2.48, a set of Fibonacci retracement levels was plotted. The 31.8% rally originated from just below $1.51, which was the 61.8% retracement level.
ZRO could be a buying opportunity
The lower timeframe trend was flipping bullishly. The 2-hour chart revealed that the price has recovered to go back above $1.80 and is challenging another local high at $1.86.
Meanwhile, the $1.60-$1.64 area was a local demand zone. A drop below $1.60 would be a warning sign, and a sustained drop below $1.417 would invalidate the short-term bullish bias.
In that scenario, a deeper retracement to $1.25 would become likely.
Final Summary
- Loon Finance selected the OFT Standard as its interoperability solution since it fulfilled three critical requirements of security, liquidity, and compliance control.
- The ZRO token price has rebounded well from an important support level and could continue the uptrend from September.
