LayerZero (ZRO) experienced a 3% decline on Tuesday after a notable 14% rebound the previous day. The recent partnership between LayerZero and MoonPay’s Open Wallet Standard (OWS) aims to enhance AI agent-driven commerce across a diverse range of blockchains. This collaboration is expected to support transactions on 170 blockchains and various assets, such as USDT0, WBTC, and PYUSD, with minimal latency, thereby encouraging the adoption of decentralized tools for high-frequency payments.
Investor interest in LayerZero is on the rise, with data from CoinGlass indicating a 17% increase in ZRO futures Open Interest (OI), bringing the total to $135.59 million in just 24 hours. This surge reflects a growing confidence among investors, as the overall notional value of outstanding ZRO contracts rises. The market has also witnessed significant liquidations, amounting to $88,450 within the same timeframe, predominantly driven by $71,670 in short liquidations. This suggests a considerable exit from bearish positions, which could further stimulate market optimism.
From a technical analysis perspective, despite the recent pullback, ZRO remains above its 50-day Exponential Moving Average (EMA) at 1.90. This level marks a Golden Cross with the 200-day EMA, suggesting a broader bullish sentiment in the market. The Moving Average Convergence Divergence (MACD) is gradually rising towards its signal line after exhibiting a bearish crossover, indicating a potential waning of bearish momentum. A future crossover between the MACD and its signal line would signify a return of bullish momentum.
The Relative Strength Index (RSI) is recorded at 56, having bounced off the midline, which indicates attempts to sustain upward momentum. On the horizon, the immediate resistance level is identified at around $2.39, corresponding with the January 23 high. A daily close above this resistance could reinforce bullish control and pave the way toward a target of $2.59, which was last tested on February 11. This technical outlook emphasizes the potential for an extended recovery rally for ZRO in the near future.
