LayerZero's ZRO token surged 15% to reach a six-month high of $2.14, up from the previous day's $2.03 trading level. According to AMBCrypto, the rally was primarily driven by LayerZero's dominance in cross-chain activity, with the platform accounting for 91.6% of transfer volume across six protocols over 30 days, totaling $12.4 billion. The platform outperformed major competitors including Chainlink, Wormhole, and Socket, which collectively shared the remaining 8.4% with other protocols. However, as reported by AMBCrypto, this dominance came from a single wallet that moved 4.46 billion WPAY tokens worth $3.6 billion from Polygon to Arc, representing 44% of Wirex's WPAY tokens and approximately 90% of the daily transfer record.
Despite the strong transfer activity, exchange inflows from strategic partners and large holders raised concerns about potential selling pressure. As reported by AMBCrypto, addresses linked to LayerZero's strategic partners transferred 8 million ZRO to Coinbase Prime, while another LayerZero-linked wallet deposited 1.7 million ZRO worth $3.6 million to Binance - a quick turnaround that raised questions about potential sales. The exchange inflows increased the supply available for potential selling, with CoinGlass data showing that LayerZero's Spot Netflow remained positive for four consecutive days, reaching a recent high of $9.1 million on October 3rd and maintaining approximately $1.45 million at press time. This contrasts with the perpetual market strength, where the Long/Short Ratio remained at 1.56 with $279 million in trading volume recorded in the past day.
The token's price movement was supported by strong perpetual market activity, with $279 million in trading volume recorded in the past day. According to AMBCrypto, the Long/Short Ratio remained at 1.56, indicating that the majority of market volume is coming from long traders. CoinGlass data shows that Binance accounts for the majority of positions, with the OI-Weighted Funding Rate reaching 0.0066%, suggesting bullish positioning remains dominant across the exchange. However, liquidation activity presents risks, with Binance traders losing approximately $74,380 in the past 24 hours, compared to short traders' losses of $47,500 within the same period.
ZRO's price structure remained bullish with higher lows forming along rising support, with the Relative Strength Index (RSI) climbing to approximately 79 inside overbought territory. As reported by AMBCrypto, the MACD indicator remained bullish with the MACD line extending above its signal line, while the RSI climbed to 78.05, placing ZRO firmly within overbought conditions. The technical setup suggests continued upside pressure, though the overbought RSI reading increases the possibility of a short-term pullback following the rapid advance. If buying persists, LayerZero could hold the $2 level and target $2.20, with $2.50 as a medium-term objective, though exchange inflows could complicate that path if deposits translate into selling pressure.
