LayerZero (ZRO): Falling Price and Token Unlocking

LayerZero (ZRO) is entering a period of intense pressure as a major token release scheduled for today, 20 June, coincides with an already bearish technical setup on the price chart. Weak market momentum and inevitable inflationary pressure combine to create a high-stress environment for the protocol's native asset.

$47 million shock coming

Approximately 24.7 million token ZRO, worth an estimated $47 million, will be released into the market following the event. This increase will significantly expand the currently circulating supply and represents the first in a series of monthly unlocks planned until May 2027.

The main problem for ZRO holders lies in the token's economic design. Currently, only 11% of the entire 1 billion token supply is in circulation, so today's unlock will significantly increase the amount available for purchase. Such events may lead to continued selling pressure, especially if team members and early investors decide to liquidate their holdings, particularly if they are bound by long-term release plans.

The market, which is already showing clear signs of weakening, could be severely impacted by this increase in supply.

Technical bearish scenario

ZRO is currently trading at $1.79, down 2.94% in the last 24 hours. This decline follows a recent rally that had taken prices just above $1.92. Since that high, the token has been on a steady descent, posting decreasing highs and lows - a clear sign of bearish momentum.

In the short term, the range between $1.77 and $1.79 represents crucial support. This level has so far contained the deterioration, acting as a barrier. However, should ZRO break through this support, the next key level will be at $1.74, a threshold that has offered some price stability in the past.

In contrast, resistance has formed in the $1.85-$1.87 range. An even more critical level is that of $1.92, a recent high that buyers would have to regain to trigger a significant reversal.

Volume, Sentiment and Technical Indicators

Various momentum indicators confirm the bearish movement. Volume over the past 24 hours has fallen to $31.33 million, marking a drop of about 30%.

This drop could be the result of profit-taking following the previous rally, or a reduction in trader interest. Despite the media attention, ZRO's market capitalisation is relatively low, at around $197.11 million, signalling a still limited market presence.

Technical indicators further reinforce the cautious approach. The MACD line at 0.0448 is below the signal line, positioned lower at 0.2014. This configuration keeps the MACD histogram in negative territory, indicating weak bullish momentum and persistent bearish pressure.

Meanwhile, the Relative Strength Index (RSI) fell to 41.79. Although not yet in the oversold zone, it suggests a growing bearish sentiment among traders.