LayerZero (ZRO) surged 14% in the past 24 hours, pushing the token closer to the $1.15 resistance level. The rally comes as a $23 million token unlock approaches, a supply event that often tests market support. Buyers have been reclaiming key support levels, but the looming unlock keeps supply risks front and center.
The push toward $1.15
ZRO is attempting to break through the $1.15 price level after days of trading below that mark. The 14% jump pushed the token above several short-term moving averages, a sign that buying momentum is building. Traders are watching whether the token can hold above $1.10, a level that served as resistance last week before turning into support.
What's driving the rally
The recent price action shows buyers stepping in after a period of consolidation. On-chain data from the facts indicates that wallet accumulation has picked up, with addresses holding between 1,000 and 10,000 ZRO increasing their balances. This accumulation suggests some market participants see the current price as an entry point ahead of potential volatility from the unlock.
The supply overhang
The approaching $23 million token unlock represents a significant supply addition. Unlocks of this size often create selling pressure as recipients may choose to liquidate part of their holdings. While the rally shows current demand is absorbing selling, the full unlock has not yet occurred. Supply risks remain, and the market will need to absorb that flow without breaking support.
No date has been announced for the unlock, but the approaching event is already influencing sentiment. The key question is whether buyers can sustain the momentum through the distribution period. If ZRO fails to hold recent gains, support around $1.00 could be tested again.
