The crypto market kicked off the week with bullish momentum as LayerZero Foundation revealed a $110 million proposal to acquire the Stargate cross-chain bridge. This sparked a sharp rally in both LayerZero’s ZRO token and Stargate’s STG token, which surged 26% and 20% respectively in the past 24 hours. Related Reading: Solana Faces Mid-Channel Standoff As Hourly Weakness Challenges Bullish Structure The proposal, posted on Stargate DAO’s forum, seeks to dissolve the Stargate DAO and phase out the STG token. In its place, holders would swap each STG for 0.08634 ZRO through a fixed-rate redemption contract. This shift would make ZRO the sole token powering the merged ecosystem while maintaining uninterrupted bridge. If approved, LayerZero will assume full control over Stargate’s operations, with revenues redirected toward ZRO buybacks, a move intended to strengthen the token’s long-term value. LayerZero (ZRO) Price Outlook Amid Bullish Momentum Following the announcement, ZRO climbed to $2.30, accompanied by a 540% surge in trading volume. Analysts suggest that breaking above $2.80 could pave the way toward the $3 psychological level. In parallel, the STG token experienced a rise of over 20% within the last 24 hours, reaching $0.20 at present. This positive movement reflects investor confidence in the token’s prospective performance in the cryptosphere. While enthusiasm is high, the proposal has drawn mixed reactions from STG holders, with some arguing the swap undervalues their tokens and removes staking rewards. The proposal requires a 70% supermajority vote from the DAO to pass, with community discussions underway. ZRO's price trends to the upside on the daily chart. Source: ZROUSD on Tradingview Strategic Push for a Unified Cross-Chain Ecosystem LayerZero’s acquisition proposal is structured as a strategic alignment intended to combine governance, improve technical efficiency, and support ongoing development. Stargate, launched by LayerZero in 2022, has processed over $70 billion in cross-chain transactions but has struggled to translate its network activity into sustained STG token growth. CEO Bryan Pellegrino described the plan as a “single unified direction” for both projects, allowing Stargate to execute on an ambitious roadmap while benefiting from LayerZero’s broader infrastructure. Related Reading: Ethereum Bullish Fundamentals Clash With Short-Term Leverage Risks Supporters believe merging tokens will eliminate inefficiencies and consolidate brand recognition in the competitive cross-chain market. If approved, the LayerZero–Stargate merger could reshape the cross-chain interoperability landscape, positioning ZRO for continued gains in the weeks ahead. Cover image from ChatGPT, ZROUSD chart from Tradingview
LayerZero’s native ZRO token has vastly outperformed the tokens of other projects including ZKsync and Starknet, which were airdropped around the same time.
LayerZero (ZRO) is under renewed selling pressure, with its price sliding toward $3.19 after being rejected at a key trendline. The sharp downturn has shifted market sentiment to a more bearish outlook, sparking concerns about deeper declines. With bears seemingly in control, all eyes are on whether ZRO can find support or if it will continue to drop. This article aims to analyze the recent bearish move of ZRO following a trendline rejection, as the price tumbles toward the critical $3.19 level. We’ll explore the key technical indicators, market dynamics, and potential scenarios to provide traders and investors with insights into whether the bearish trend will continue or if a recovery might be on the horizon. As of the time of writing, LayerZero is trading around $3.73, marking a 5.94% decline, with a market capitalization of over $410 Million and a trading volume exceeding $100 million. In the past 24 hours, ZRO’s market cap has decreased by 5.99%, and its trading volume has dropped by 0.57% Market Sentiment Shifts: LayerZero Set For Further Declines On the 4-hour chart, following a successful trendline rejection, LayerZero has continued to gain negative momentum, dropping below the 100-day Simple Moving Average (SMA) toward the $3.19 support level. The digital asset has maintained a steady downward move, indicating that the bears are in control and could push the price even lower. Also, the 4-hour Relative Strength Index (RSI) analysis reveals that the signal line has dropped below 50% toward 35%, indicating a pessimistic market shift. This suggests that ZRO may continue to experience downward movement as momentum builds. On the 1-day chart, after the trendline rejection, LayerZero shows promising negative signs marked by the formation of a significant bearish candlestick in the previous trading session. The rejection at the trendline indicates increased selling pressure, which could lower ZRO’s price in the days ahead as market sentiment continues favoring the bears. Finally, on the 1-day chart, the RSI signal line has dipped to 47%, slightly falling below the 50% threshold. This decline below 50% indicates that momentum is leaning toward the bearish side and could signal further downside movement in ZRO’s price. Key Levels To Watch: Support Or More Downside For ZRO? As LayerZero continues through its bearish phase, the $3.19 support level becomes crucial in determining its potential for a rebound or further decline. If ZRO holds above this key support, it could set the stage for a rise toward the $4.5 resistance level. Should the price break through this resistance, it may rally, aiming for the next resistance point at $5.6 and potentially reaching even higher levels. However, if the $3.19 support level fails to hold and the price breaks below this threshold, the cryptocurrency could face additional declines, potentially moving toward the $2.69 range. A breach of this level might signal a more downward trajectory, possibly testing even lower support levels. Featured image from Adobe Stock, chart from Tradingview.com
Initially, the team identified over two million addresses as potential sybils but later refined their criteria to minimize false identifications, resulting in a more precise classification.