Key Takeaways
LayerZero’s ZRO token dropped 6% to test the $1.35 support level on April 28 after an ecosystem-linked wallet moved 1 million ZRO to Binance, adding to pressure from a wider altcoin sell-off.
On-chain data first reported by CoinPedia showed a wallet connected to the LayerZero project depositing approximately $1.43 million worth of ZRO to the exchange, with the transaction occurring as the price broke below the $1.50 mark.
The move leaves the seller with a remaining balance of 29 million ZRO, valued at over $41 million, creating a significant overhang for the market. The sell-off pushed ZRO to be among the day's top losers, with long liquidations reaching approximately $480,000, far outpacing the $6,130 in short liquidations, according to data from CoinPedia. The broader market sentiment remains fearful, with the Crypto Fear & Greed Index at 33, down from 47 a day prior.
The token now faces a critical test of the $1.35 support zone; a failure to hold this level could trigger a long squeeze and accelerate a decline toward the next major support near $1.10. The selling pressure comes as the project continues to face scrutiny over its role in the recent $292 million KelpDAO rsETH exploit.
The bearish price action for ZRO unfolds against a backdrop of general weakness in the altcoin market. The total crypto market capitalization declined 2.3% to $2.65 trillion, with Bitcoin’s dominance holding firm at 58.1%, according to Forex Factory data. While Bitcoin and Ethereum saw modest declines, the risk-off mood hit higher-beta altcoins more severely.
Technically, ZRO remains in a clear downtrend after being rejected from the $1.60–$1.65 resistance area. The price is trading below key short-term moving averages, with a recent bearish crossover reinforcing the negative momentum. The repeated tests of the $1.35 support level suggest that demand in this area is being absorbed, increasing the probability of a breakdown in subsequent sessions.
This article is for informational purposes only and does not constitute investment advice.
