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LayerZero (ZRO) Price Prediction – When will ZRO hit $10?

LayerZero (ZROUSDT) Awaits A Valid Breakout
author Written by
Rex John Walsh
author Fact checked by
Sangram Mohanta

Last Updated on July 2, 2024 by TOP FOREX BROKERS REVIEW

LayerZero Labs' unconventional token dissemination for ZRO, necessitating a donation to gain access, has perplexed Polymarket bettors. Currently, crypto users are disputing a $680,000 wager and questioning this launch's genuine nature.

The crypto community was taken aback by LayerZero Labs' implementation of a novel distribution method for 85 million ZRO tokens, which they dubbed "Proof-of-Donation."

Protocol Guild, a non-profit collective of top Ethereum researchers and developers, requires eligible claimants to donate $0.10 per token to obtain ZRO.

This approach differs from the conventional "airdropping" approach, which involves the distribution of tokens at no cost to stimulate interest and adoption. LayerZero defends this method, asserting that conventional "airdrops" do not promote long-term protocol health or community development.

To underscore this distinction, the initiative explicitly refrained from employing the term "airdrop." Nevertheless, the controversy surrounding Polymarket is fundamentally rooted in this semantic distinction.

How LayerZero Came into the Spotlight?

Before June 30, users on Polymarket, a decentralized wagering platform, had placed substantial wagers on the occurrence of a "ZRO airdrop," resulting in a total pot of $680,000.

The "Yes" odds plummeted to 54% just before the wager concluded due to the uncertainty generated by LayerZero's distinctive launch. Many bookmakers are currently challenging the outcome in favor of "Yes."

Polymarket's dispute resolution collaborator, the UMA protocol, has been consulted to ascertain the outcome. The true nature of the ZRO launch must be determined by UMA's "decentralized truth machine," which depends on the voting of UMA token holders. Nevertheless, a few Polymarket users are concerned that the process may be manipulated and speak out against it.

The discussion is ongoing on Polymarket's Discord server. Certain users contend that LayerZero cannot unilaterally define " airdrop."

Others have noted that in a previous dispute involving Lens Protocol, token transactions were explicitly excluded from being classified as an "airdrop." Nevertheless, a recent "rules update" from Polymarket recommends deciding in the context of the broader ZRO distribution.

LayerZero anticipated that the donations would generate approximately $18.5 million for Protocol Guild, a collective funding mechanism for Ethereum developers.

Layer Zero (ZRO) Is Not An Airdrop

The crypto community has responded with anger to the decision, contending that the "airdrop" has been transformed into an initial coin offering (ICO) by the requirement to pay a "tax."

This is primarily because token recipients have "little to no interest" in the project's long-term success. There has also been an increase in airdrop farming and Sybil assaults, which involve entities creating multiple wallets to farm an airdrop.

Bryan Pellegrino, the co-founder of LayerZero, has dedicated a significant amount of time to defending the token launch. He has reiterated that no one is entitled to the tokens and has advised users who do not wish to donate to desist from claiming them.

 

ZROUSDT Awaits A Valid Bullish Breakout

ZROUSDT Awaits A Valid Bullish Breakout

LayerZero (ZRO) aimed higher since the Binance launch, taking the price above the $5.00 level with more than a 500% gain. The price moved sideways after achieving a valid hourly close with a downside correction. As the bearish pressure is still active, investors should closely monitor how the price forms a bottom before finding a bullish opportunity.

According to the key Fibonacci retracement indicator, the 50% retracement level from the $0.9920 low to the $5.622 high is at the $3.607 level. The recent price trades below this crucial Fibonacci level, so we may consider it a discount zone. Based on the technical analysis, any bullish opportunity from this discounted zone has more room to gain on the bullish side.

The hourly candle chart for LayerZero shows a downside correction within a falling channel. In the most recent price action, hourly candles moved sideways after a bearish range breakout, suggesting more downside correction may happen in the coming hours.

As a solid bottom has not yet formed, investors should wait to see how the price reacts in the discounted zone before anticipating any long opportunities. An extended downside correction below the $2.500 psychological line followed by a V-shaped recovery could present a high-probability long opportunity. Moving above the $3.607 high-volume level could increase buying pressure toward the $5.622 high.

On the other hand, the Relative Strength Index (RSI) is still in the oversold zone. To validate a long signal, it needs to overcome this and move beyond the 50.00 neutral point.

In the coming days, a stable market above the 4.00 to 4.500 area could be a positive sentiment for long-term buyers. Valid market pressure above this level could open the door to reaching the 10.00 level by the end of 2024 and the 15.00 level by the end of 2025.

 

ZROUSDT Intraday Price Action Analysis

ZROUSDT Intraday Price Action Analysis

In the 15-minute LayerZero (ZROUSDT) chart, ongoing selling pressure is visible, with no sign of a bullish recovery. Although the MACD histogram aimed above the neutral point with a bullish crossover in the signal line, there is no sign of a bottom forming in the main price chart. This indicates that we are still in a bearish market and could see more downward correction below the 2.500 level.

Furthermore, the weekly VWAP remains flat above the crucial 3.139 resistance level, with additional resistance from the 100 simple moving average (SMA).

Based on the 15-minute price action, bullish exhaustion must occur with counter-impulsive momentum above the 3.139 level. Moreover, a valid 15-minute candle above the 3.300 level could extend buying pressure toward the 4.000 area. The alternative scenario is additional selling pressure down to the 2.000 level, followed by bullish exhaustion and trendline breakout. In both cases, the price is likely to reach the 4.000 level before confirming a breakout on the daily chart.

Is ZROUSDT A Buy?

As per the ongoing market pressure on LayerZero, the long opportunity has yet to open. Long-term investors and holders might consider taking positions around the $2.500 area. A proper breakout from the descending channel is needed before finding a stable market.

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