LayerZero’s price rose as much as 45% on Wednesday following the company’s announcement that it will launch its own blockchain 1, called Zero, later this year.
Summary
- LayerZero was the top gainer on Wednesday after rallying nearly 45% after the project announced plans for a new L1 blockchain called Zero.
- ZRO price is looking for a bullish breakout from the multi-month cup and handle pattern.
According to data from crypto.news, LayerZero (ZRO) shot up 45% to $2.44 on Wednesday, February 11, emerging as the top gainer among the top 100 cryptocurrencies before slowly settling at $2.39 at press time.
A native token and management asset for the omnichain interoperability protocol LayerZero has come together after LayerZero Labs revealed plans to launch its own layer 1 blockchain called Zero.
Scheduled to go live in the fall of this year, the network is said to scale up to two million transactions per second with transaction costs reduced to around a million dollars. It achieves this by using zero-knowledge proof to separate transaction execution and verification.
The ZRO token will be used to provide interoperability between the three areas of the new network and across more than 165 blockchains. This can greatly increase the usage of the token as adoption scales.
Other big businesses that have shown interest in the project are Google Cloud, the Intercontinental Exchange, the parent company of the New York Stock Exchange, and the Depository Trust & Clearing Corporation, each testing the protocol’s capabilities.
Besides the technological roadmap, another factor that also drove the demand for the ZRO token was the strategic investment from Citadel Securities, ARK Invest, and Tether Investments, the investment arm of the leading stablecoin producer Tether.
Such investments from major financial players often bring greater exposure to the project, fueling strong rallies at least in the short term.
On the daily chart, the LayerZero token is close to breaking out of the multi-month cup neck and handle pattern around $2.4. Cup and handle patterns are one of the most popular bullish patterns in technical analysis.
A look at other technical indicators also presented a more focused view of the bullish outlook. Notably, the MACD lines have made a bullish crossover while the Supertrend line has moved below the price level, lighting up a green signal.
Therefore, LayerZero will probably continue its rally until May 2025 high of $3.34 and respectively to $3.6, which is the target calculated by adding the height of the cup formed at the level of the neckline. The target would mark an upside of more than 45% from the current price level.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
