LayerZero’s ZRO jumps 30% after Cathie Wood backs ‘Zero’ chain

The tokenization boom and corporate positioning have begun to play out, and LayerZero’s [ZRO] latest Layer-1 chain, Zero, is just one of the telltale signs. 

The protocol, which started out as an interoperability layer, has upped its bets and debuted its high-performing chain, Zero, backed by high-profile institutions in global financial markets, including Citadel Securities, DTCC, ICE, and Ark Invest.

In fact, Ark Invest’s Cathie Wood has been named advisor, and she fully supported LayerZero team. She added,

ZRO explodes 30%, but will it hold the gains?

With firms positioning for tokenized asset workflows, LayerZero is now on the institutional radar. And the retail market jumped on the update, as illustrated by the protocol’s token ZRO’s explosive pump. 

ZRO surged over 30%, rising from $1.8 to $2.3. The latest bounce helped extend its February recovery gains to 81%.

AMBCrypto had anticipated the latest bounce; however, at press time, a cool-off may not be overruled despite the extremely bullish updates. 

Notably, the rally hit the H2 2025 resistance level of $2.4, suggesting that the level could attract sellers who have held throughout the Q4 market rout. As such, investors willing to cut their losses at break-even may do so at this level, hence calling for caution. 

Besides, the RSI was near the oversold territory, suggesting the upside momentum may be limited before a potential reversal. If so, a retest of $1.8 could offer new buying opportunities. 

But the bearish outlook could be invalidated if price clears the 2025 hurdle and flips $2.5 into support. In such a scenario, the next bullish target is $3.0, with a 25% potential gain if it is hit. 

Interestingly, some analysts expected the altcoin to soon join the top 20 crypto assets.

Speculative interest in ZRO explodes, but… 

The buying pressure after the update was also strong in the derivatives market. Speculative interest nearly doubled, with Open Interest rising from $84 million to over $154 million in the past 24 hours. 

However, Exchange Net Position Change also hit a five-month high of $7 million, last seen before the October crash.

This meant selling pressure also surged as holders moved to sell into the rally. If the dump intensifies, the $2.4 level could become a hurdle for bulls for a while. 

Final Thoughts 

• LayerZero unveiled a new performant L-1 chain, Zero, and tapped Cathie Wood into the advisory board
• ZRO extended its recovery to 80% after the revelation of top institutions backing the firm