LayerZero (ZRO) bulls are showing renewed strength, reviving the rally as the price draws closer to the $4.5 key resistance level. After a temporary pause in its upward movement, market momentum appears to be shifting, with bullish forces looking to drive the price higher. However, the question is whether LayerZero can maintain this upward trajectory and break through the $4.5 barrier.
This analysis will explore whether LayerZero’s recent bullish resurgence can propel the price past the critical $4.5 resistance level. By analyzing current technical indicators and market trends, we seek to determine if this renewed rally has the potential to break through this key barrier and what it could mean for future price movements.
At the time of writing, ZRO was trading at approximately $4.04, representing a 7.68% gain in the past day. During this time, the cryptocurrency’s market capitalization has risen to over $444 million, and trading volume has surpassed $121 million, reflecting an increase of 7.79% and 81.14%, respectively.
Technical Indicators: Assessing The Bullish Momentum
Recently, ZRO’s price action on the 4-hour chart has turned bullish following a short-term pullback that found support at $3.60. The price is now trading above the 100-day Simple Moving Average (SMA) and showing strong momentum as it targets a move toward the $4.50 level.
An analysis of the 4-hour Relative Strength Index (RSI) reveals that bulls have gained a strong foothold in the market. The RSI’s signal line has risen above the 50% mark, reaching approximately 63%, indicating a growing bullish momentum for the cryptocurrency. This upward movement suggests that buying interest is intensifying and that the optimistic trend could continue to strengthen, potentially driving further price gains.
Also, on the daily chart, LayerZero is displaying upbeat momentum, with the formation of bullish candlesticks signaling a positive shift as it advances toward the $4.50 level. Combining rising bullish candlestick patterns and improved sentiment indicates that ZRO is well-positioned for a continued ascent, with the potential for additional gains as it approaches this critical resistance level.
Finally, on the 1-day chart, a careful examination of the formation of the 1-day RSI reveals that LayerZero could sustain its bullish trend toward the $4.4 resistance mark as the signal line of the indicator has risen above 50% and is currently attempting a move towards the 60% threshold.
Potential Scenarios: Can LayerZero Sustain The Rally?
LayerZero’s ability to maintain its rally depends on several crucial factors. Should the price break through the $4.50 resistance level with strong volume, it could indicate a continuation of the upward trend and potentially target its all-time high of $5.60. A successful move above this level might pave the way for the formation of new highs.
However, if the momentum falters or the price struggles to maintain above this key level, there may be a risk of a pullback or consolidation toward the $3.6 support mark. When the price drops below this support, it may face further declines, possibly testing the $3.19 support range and other lower levels.
Featured image from Adobe Stock, chart from Tradingview.com
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