LayerZero price prediction: ZRO tests $1.30 supply zone as bears circle

LayerZero [ZRO] saw a 29% spike in Open Interest and a 132% increase in daily trading volume over the past 24 hours. The short-term volatility meant ZRO was down 0.95% over the previous day, though it had reached a local peak of $1.308. Since tapping this local high, the altcoin retraced by 12% within 12 hours. At the time of writing, it had ceded control of a notable short-term demand zone. AMBCrypto took a closer look at its price trends to understand if traders should be looking to buy or sell.

The Open Interest spike since the 3rd of June came alongside ZRO's move beyond the $1.16-$1.18 resistance zone it had been trapped under in the past week of trading. The rising Open Interest and trading volume, paired with fundamental developments, appeared to justify the bullish breakout and signaled that further gains were possible. Yet, on the 1-day timeframe, a clear bearish trend remains in play for LayerZero. The token has been printing lower highs and lower lows since the final week of March — a pattern traders have come to know and, apparently, love.

The range formation's low at $1.46 (purple) was relinquished in the first half of May. The current bearish swing structure's latest impulse move downward stretched from $1.395 to $1.066. Using these levels, a set of Fibonacci retracement levels was plotted. It highlighted the $1.269-$1.325 area as the golden pocket from where a bearish continuation can be expected. The recent high-volume rally into this supply zone, followed by a quick rejection, appeared to confirm the bearish bias — bears do enjoy a textbook setup.

The $1.15 area, highlighted in cyan, has been an important resistance over the past week. Briefly, ZRO bulls flipped it to support, but were unable to maintain control of this region. The price action in recent hours, combined with the higher timeframe foray into the golden pocket around $1.30, meant traders can look to sell ZRO. The immediate price targets are $1.06 and $0.98, with $0.86 as a downside target in case of a sustained bearish run.