LayerZero (ZRO) is experiencing a turbulent phase as its recent recovery attempts falter amid mounting bearish pressure. After initially showing potential, the altcoin’s upward momentum has stalled, leading to a possible downturn. With key support levels at risk and bearish forces gaining traction, the outlook for LayerZero’s recovery appears increasingly uncertain.
In this article, we analyze LayerZero’s recent challenges, focusing on its stalled recovery amid intensified bearish pressure. It examines key technical indicators and market sentiment contributing to the downturn, providing insights into how these factors may impact ZRO’s price trajectory. Additionally, the article assesses critical support levels that could affect the token’s ability to navigate the current environment and explores the prospects for a potential rebound in the midst of ongoing market challenges.
Currently, ZRO’s price has shown a bearish turn on the 4-hour chart, retracing below the 100-day Simple Moving Average (SMA) after struggling to break above this key technical level. This inability to maintain upward momentum suggests a shift in market sentiment with selling pressure outweighing buying interest. An analysis of the 4-hour Relative Strength Index (RSI) shows a decline in strength toward neutral territory with an RSI level nearing oversold territory, raising concerns about possible further declines.
On both daily and hourly charts, negative momentum is highlighted by multiple bearish candlesticks and drops below significant moving averages; indicating that negative sentiment is strengthening as sellers exert downward pressure on LayerZero’s price trajectory.
Based on current market activities, LayerZero appears poised for an additional drop towards $3.5 support level if it breaches this level it could lead to an extended downward movement pushing it toward other significant support levels. However If ZRO’s price stabilizes and regains bullish momentum climbing toward $4 resistance mark should it successfully breach this level laying foundation potentially targeting even higher resistance levels as market sentiment shifts back towards bulls side
