Market Overview: LayerZero (ZROUSDT) — 24-Hour Price Action Analysis

• Price declined 12% from 1.935 to 1.876 over 24 hours, with a late-day rebound to 1.994.
• Strong volume spikes emerged in late ET hours, confirming a bullish breakout above key resistance.
• RSI bottomed near oversold levels, suggesting a potential mean reversion in the near term.
• Volatility expanded sharply as price pushed above Bollinger Bands, signaling heightened momentum.
• A bullish engulfing pattern formed near 1.948, reinforcing the case for a near-term continuation higher.

Market Overview

LayerZero (ZROUSDT) opened at 1.935 on 2025-08-21 at 12:00 ET and closed at 1.876 on 2025-08-22 at 12:00 ET. The token reached a high of 1.999 and a low of 1.86, with total trading volume of 2.48 million ZRO and a notional turnover of $4.63 million. The late-day rally reflects a shift in sentiment and accumulation pressure.

Structure & Formations

Price carved a bearish structure in the early hours, breaking below key psychological support at 1.91 and testing 1.89. This was followed by a strong consolidation phase before a late-day bullish breakout above 1.96. A large bullish engulfing pattern formed around 1.948, signaling a potential reversal from the earlier downtrend. The 1.999 high represents a 61.8% Fibonacci extension from the earlier bearish swing.

Moving Averages

On the 15-minute chart, price crossed above both the 20-period and 50-period SMAs in the final 4 hours, suggesting a short-term bullish trend. Daily MAs, while not shown, would indicate whether the broader trend remains bearish or neutral based on the previous week’s action.

MACD & RSI

RSI bottomed near 28 in the early morning, entering oversold territory and setting up a potential bounce. MACD turned positive after 15:00 ET, with a bullish crossover and increasing histogram bars, indicating strengthening momentum in the final hours.

Bollinger Bands

Volatility expanded significantly as price pushed above the upper Bollinger Band during the afternoon ET hours, confirming a breakout in a high-volume context. This suggests a strong short-term trend change and potential for continuation.

Volume & Turnover

Volume surged from ~$300k to over $1.2 million in the final 3 hours of the period, with the highest turnover observed at 14:15 ET and 15:00 ET. Price and volume moved in sync, confirming the bullish breakout. No material divergence was observed.

Fibonacci Retracements

The 1.89 to 1.999 swing shows a clear 61.8% level at 1.966, which was tested and held as support before turning into resistance. The 38.2% level at 1.924 acted as a key pivot during the morning consolidation phase.

Forward-Looking View and Risk Caveat

With momentum shifting to the bullish side and a strong volume base supporting the recent high, LayerZero appears poised for a test of the 2.00–2.02 range in the next 24 hours. However, a failure to hold above 1.96 could trigger a pullback toward 1.92 and 1.89, requiring close monitoring of order flow and volume for confirmation.