LayerZero ZRO Rises 3.96% as Stargate Merger Outweighs Token Unlock

LayerZero’s ZRO token is set to face a major market test in early August 2025, as a significant token unlock is scheduled for August 20, 2025. Approximately 25.71 million ZRO tokens—valued at around $58.36 million—will become tradable, potentially introducing increased supply pressures into the market [1]. This event occurs amid a broader $411 million unlock period involving multiple projects, including KAITO, scheduled from August 15 to 22 [3].

The upcoming unlock follows a recent surge in ZRO’s price, which rose 3.96% in the last 24 hours to $2.18, driven by optimism around LayerZero’s proposed acquisition of Stargate Finance [1]. The acquisition, announced on August 10, involves the retirement of Stargate’s STG tokens via a fixed-rate conversion into ZRO, reinforcing LayerZero’s strategic position in cross-chain infrastructure and boosting investor sentiment [1].

Despite the positive momentum, analysts caution that the token unlock could trigger short-term volatility. Historical trends show that similar events often result in temporary price adjustments as the market absorbs the new supply [1]. The RSI for ZRO stands at 57.19, suggesting a neutral but potentially bullish momentum, while the MACD line remains above the signal line, indicating strengthening upward movement [1]. The 7-day and 20-day SMAs are currently at $2.21 and $1.96, respectively, providing some technical support to the current price.

Immediate support levels for ZRO are identified at $2.00 and $1.64, while a break above the $2.60 resistance could push the price toward the key $3.00 psychological level [1]. The 24-hour trading range between $2.08 and $2.21 suggests a period of consolidation is underway, with a pivot point at $2.16 reinforcing the short-term bullish outlook [1].

Traders are advised to monitor the RSI closely to avoid overbought conditions, particularly as the market anticipates potential profit-taking once the indicator surpasses 70 [1]. The current risk-reward balance appears favorable, with an aggressive entry point at $2.18 and a stop-loss at $2.00 offering an 8% downside risk and a 19% upside potential at $2.60 [1]. For conservative investors, a pullback to the $1.96–$2.00 support zone may present a safer entry opportunity.

As the market prepares for the token unlock, investor sentiment remains cautiously optimistic, with many believing the Stargate merger could offset potential short-term volatility [1]. However, the event still represents a critical juncture for ZRO, and traders are advised to remain vigilant and informed about potential market reactions [3].

Sources:

[1] LayerZero (ZRO) Surges 4% as Stargate Merger Proposal Outweighs Token Unlock

https://blockchain.news/postamp?id=20250817-layerzero-zro-surges-4-as-stargate-merger-proposal-outweighs-token

[3] XRP's $2.22 Support Test: Make-or-Break Level for a Bullish 15% Scenario

https://cryptorank.io/news/feed/4ea4d-xrps-2-22-support-test-make-or-break-level-for-a-bullish-15-scenario