LayerZero price prediction: Bears eye ZRO's $1.30 supply zone

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 hitting that high, the altcoin retraced by 12% within 12 hours — a reminder that in crypto, gravity always collects. 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 figure out whether traders should be looking to buy or sell.

$ZRO is still operating within a higher timeframe downtrend. 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 during the past week of trading. The increased Open Interest and trading volume, paired with fundamental developments, appeared to justify the bullish breakout and signal that further gains were possible. So far, so optimistic — on paper, at least.

Yet, looking at the 1-day timeframe, a clear bearish trend for LayerZero is hard to miss. The token has printed lower highs and lower lows since the final week of March. 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 was from $1.395 to $1.066. Using these levels, a set of Fibonacci retracement levels was plotted, highlighting 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 — because nothing says "healthy breakout" like an immediate U-turn.

$ZRO traders' call to action – Sell. 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 on the table in case of a sustained bearish run.

Final Summary: LayerZero broke out past a local resistance zone on high trading volume and drew sizeable speculative interest. This bullish breakout did not last long and has already begun to reverse at press time — a familiar story for anyone who has watched enough altcoin charts.