LayerZero (ZRO) extended its bullish momentum after breaking out of a pennant consolidation pattern on August 19. The rally subsequently pushed past the pattern's pole high at $1.30, though resistance levels triggered market reversals on August 23 and August 26. Over the weekly timeframe, ZRO recorded gains amounting to 35%.
The altcoin's price action has received support from improving spot demand and strong whale activity in futures markets. At the time of reporting, ZRO was trading above its 20-day, 50-day, and 100-day exponential moving averages (EMAs), indicating that short-term and medium-term momentum remained bullish, with the $1.40 resistance level standing as the next major target.
Derivatives metrics also flashed bullish signals, with large whale orders dominating the futures market to suggest larger participants were positioning around the token's price. Concurrently, the Spot Taker CVD pointed toward increasing buyer dominance, indicating strengthening spot demand across the board.
Market activity was further reflected in ZRO's trading volume, which exceeded its fully diluted valuation over the past week, highlighting an unusually high market turnover relative to its potential fully diluted value. Over the two days prior to reporting, trading volume surpassed the $1.4 billion mark.
While the technical indicators, spot demand, and futures activity have kept the bullish setup intact, a continuation of buyer dominance and whale support will be required to test the $1.40 resistance. Conversely, any price breakdown below the key EMAs would invalidate the current setup.
