LayerZero (ZRO) recorded a double-digit percentage gain, at press time, placing it among the best-performing cryptocurrencies on the market.
Trading activity accelerated alongside price action, with market volume surpassing $130 million during the rally.
However, market data suggests that this breakthrough is approaching a familiar hurdle. Despite multiple attempts, price has yet to decisively break through a key resistance level, which continues to cap further upside.
ZRO’s perpetual liquidity keeps prices high
ZRO’s gains over the past 24 hours come amid a sharp increase in market liquidity, with price action reflecting sustained bullish conviction among traders.
Perpetual liquidity has increased significantly, reaching approximately $96 million at the time of writing. This coincided with positive funding rate data of 0.0191%, reinforcing the idea that long traders remain in control.
Source: CoinGlass
When capital inflows increase alongside a positive funding rate, this generally indicates strongly bullish positioning in derivatives markets. In the case of ZRO, this dynamic has already translated into higher prices and increased volumes.
The simultaneous rise in both indicators suggests that the current move is driven by momentum rather than an uptick or speculative rise, at least for now.
THIS obstacle remains
ZRO’s recent gains have kept the asset trading above the descending channel it previously left on the daily timeframe, adding to the strength of the breakout attempt.
The rally follows a clear reaction from the immediate demand zone between $1.81 and $1.88, which served as the basis for the latest bullish surge.
That said, a clear breakout would require the price to decisively move above the $2.28 resistance level, marked on the chart by a dotted black line. A successful move beyond this zone could open the door for continued upside in the near term.
Source: TradingView
A broader bullish structure would only be confirmed if ZRO manages to overcome the next major resistance at $2.59, a level that could act as a decisive trigger for an expanding rally.
Beyond this, the chart still leaves room for a deeper move into higher territory, with upside levels up to $3.67, based on marked resistance areas.
Community belief remains high
Market sentiment around ZRO has strengthened further, highlighting growing conviction among holders and traders.
Community sentiment data from CoinMarketCap shows a notable increase in bullish votes, reflecting a more optimistic market narrative around the asset.
Source: CoinMarketCap
As of press time, approximately 65% of voters, representing approximately 23,800 participants, expressed an optimistic outlook, anticipating further increases.
However, while sentiment indicators help gauge crowd psychology, they do not guarantee price direction and should be weighed against technical and liquidity data.
Final Thoughts
- ZRO attracts large capital inflows as long positions gain dominance.
- Market structure provides key levels that price must cross to become decidedly bullish.
