After falling to $1.70, LayerZero [ZRO] bounced back, defended $2, and climbed to a six-month high of $2.14. At press time, ZRO traded around $2.03, up 15% on the daily charts.
Why is LayerZero rallying now?
LayerZero rallied as its cross-chain activity drew renewed market attention.
Bitblaze observed that LayerZero accounted for 91.6% of transfer volume across six protocols over 30 days, totalling $12.4 billion. It outperformed protocols including Chainlink, Wormhole, and Socket, which collectively shared the remaining 8.4% with other competitors.
That dominance followed a single-day record of $4 billion in transfers. However, one wallet did much of the heavy lifting.
Another X user, Dami, noted that the wallet moved 4.46 billion WPAY, worth $3.6 billion, from Polygon to Arc. This represented 44% of Wirex’s WPAY tokens and approximately 90% of the daily transfer record.
The activity put LayerZero in the spotlight, although its concentration leaves a question: can broader usage sustain that momentum?
Are LayerZero’s large holders preparing to sell?
As LayerZero gained, exchange transfers from strategic partners and large holders followed.
CoinGecko observed that addresses linked to LayerZero’s strategic partners transferred 8 million ZRO to Coinbase Prime.
Such movements can stir sell-off concerns, although transfers alone do not confirm sales. They could also serve custody or liquidity needs.
On top of this, another LayerZero-linked wallet deposited 1.7 million ZRO, worth $3.6 million, to Binance.
The wallet had received those tokens barely a day earlier. That quick turnaround raised questions about a potential sale.
Meanwhile, CoinGlass data showed that LayerZero’s Spot Netflow had remained positive for four consecutive days.
On the 3rd of October, Spot Netflow reached a recent high of $9.1 million. It remained positive at approximately $1.45 million at press time.
More tokens were entering exchanges than leaving, increasing the supply available for potential selling. Whether holders actually cash out could determine how much pressure the rally faces.
Can ZRO hold $2 and reach THIS?
LayerZero’s price structure remained bullish, with higher lows forming along rising support.
The Relative Strength Index (RSI) reinforced that momentum, climbing to approximately 79, inside overbought territory.
Buyers retained strong momentum, although an elevated RSI also leaves room for a pullback.
If buying persists, LayerZero could hold $2 and target $2.20, with $2.50 as a medium-term objective. However, exchange inflows could complicate that path if deposits translate into selling. A loss of $2 could bring the $1.70 support back into focus.
Final Summary
- LayerZero rallied 15%, while one large WPAY transfer accounted for approximately 90% of its daily cross-chain transfer record.
- ZRO’s bullish momentum faced growing exchange inflows, with $2 serving as the immediate level to hold.