Key takeaways
- ZRO, the native token of LayerZero, outperformed the market, gaining more than 20% in value within 24 hours.
- The rally followed LayerZero’s proposal to acquire Stargate Finance.
ZRO surges on Stargate acquisition proposal
ZRO, the native coin of the LayerZero ecosystem, was one of the best performers in the market over the past 24 hours. The token rose roughly 22% during that period, pushing its price to $2.50 for the first time since May.
The rally was driven by a proposal from LayerZero to acquire Stargate Finance (STG). The LayerZero Foundation has proposed a $110 million acquisition of the Stargate bridge to the Stargate DAO.
With the proposal now public, STG token holders will soon vote on the offer. If approved, STG tokens would be discontinued and holders could exchange STG for ZRO. STG itself has risen more than 15% since the announcement, as the proposal already meets a 70% approval threshold. The proposal states,
“This offer is designed to accelerate both Stargate and LayerZero, providing Stargate with the resources to pursue an aggressive roadmap that expands its remit beyond bridging, while tying together an exceptional yield-generating protocol that brings end users deeper into the LayerZero ecosystem.”
ZRO eyes $2.80 as bullish momentum remains
The recent rally pushed the ZRO/USDT pair into bullish territory, with technical indicators suggesting further upside potential. Nonetheless, the pair has shown inefficiency, indicating ZRO may temporarily retrace to capture liquidity before continuing higher.
An RSI reading around 79 signals the token is approaching overbought conditions if the rally persists. The MACD line sits in positive territory, indicating buyers are currently in control.
If the rally continues, ZRO could target the next resistance level at $2.80 within hours or days. Sustained bullish momentum could pave the way for ZRO to test the psychological $3.00 level.
However, if the market corrects or reverses, ZRO may pull back to the first liquidity zone around $2.00. Failure to hold that zone could see ZRO retest the lower trend-level support near $1.89.