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LayerZero will unlock nearly 25,000,000 ZRO tokens worth $47M today, June 20
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The price of the token is already in a downtrend on a short term, testing support levels
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The combination of a supply rise and technicals that are bearish creates a high risk outlook
The LayerZero token (ZRO) is headed for a period of significant stress as a major unlocking of supply, scheduled for today, coincides with a bearish technical setup in its price chart. This combination of imminent inflationary and weak market momentum created a high-stakes situation for the native asset of the interoperability protocols.
Nearly 24.7 million ZRO Tokens, worth approximately $47 Million, will enter the market during this event. This is a significant increase in the current circulating supply. It is also the first of several monthly unlocks that will continue until May 2027.
A $47 Million Supply Shock
ZRO holders are most concerned about the token’s economic structure. Only 11% of 1 billion tokens are currently in circulation. Today’s unlock will increase the number available for sale. These events, particularly when they are part a long-term release that is pre-scheduled, can create a sustained selling pressure, as early investors and members of the team are able liquidate their holdings.
This looming increase in supply is hitting a market which is already showing signs of weakness.
Related to Massive $230M in Insider Locks Set to Shake Crypto Markets (16-22 June 2025).
A Bearish Backdrop
ZRO’s current price is $1.79. This represents a 2.94% decrease in the last 24 hour. This decline follows on from a recent surge which pushed prices above $1.92. Since then, the token has been on a steady decline, forming lower lows and lower highs, a clear indication of bearish momentum.
The key support level for the short term is between $1.77 to $1.79. This range has acted like a pause, stopping the current decline. If ZRO breaches the support, then the next likely stop will be near $1.74. This level previously offered some stability in price.
The resistance, on the contrary, has formed between 1,85 and 1,87. The recent high of $1.92 is a stronger resistance level that buyers must reclaim in order to see any meaningful reversal.
Volume, Sentiment and Technical Indicators
Key momentum indicators confirm the bearish price movement. ZRO’s 24-hour volumes has dropped by around 30%, to $31.33 Million.
This decline may be due to a reduction in trader participation, or possibly profit-taking after the previous rally. The token’s market cap is now $197.11million, highlighting its relatively small footprint in spite of high interest.
RelatedLayerZero Rewards active users by redistributing unclaimed ZRO tokens
Technical indicators reinforce caution. The MACD line is still below the signal line which is deeper at 0.2014. This configuration keeps MACD’s histogram in the negative territory, revealing a weak bullish trend and continued bearish pressure.
The Relative Strength Index has fallen to 41.79. It is not yet oversold but it does indicate a growing bearish sentiment by traders.
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