LayerZero Defies Token Unlock Pressure, ZRO Breaks Above $2.20

Source: CryptoNewsNet Original Title: LayerZero defies token unlock pressure, ZRO breaks above $2.20 Original Link:

LayerZero Demand Overwhelms Token Unlock Pressure

LayerZero is commanding attention across the crypto market as its native token ZRO pushes higher despite heavy supply-side headwinds.

The ZRO price has surged decisively above the critical $2.20 resistance level, defying expectations tied to recent token unlocks. At the time of writing, ZRO is trading near $2.21, posting gains of over 12% in 24 hours, 35% over the past week, and more than 74% on the monthly timeframe.

This move has positioned LayerZero as one of the strongest outperformers in an otherwise flat broader crypto market.

One of the most notable aspects of the current ZRO price rally is how the market has handled new supply. On January 20, LayerZero unlocked approximately 25.71 million ZRO tokens, representing around 6.36% of the circulating supply.

Token unlocks of this magnitude are typically bearish, as they increase sell pressure and dilute existing holders. Instead, ZRO demand absorbed the new supply with little visible impact on price.

On-chain data showed large transfers moving into institutional-grade custody solutions rather than exchanges, suggesting accumulation rather than distribution by large holders. In market terms, predictable supply increases lose their bearish influence when buyers are willing to absorb them.

Speculation and Momentum Fuel LayerZero Price Strength

Beyond supply dynamics, speculative interest has played a major role in pushing ZRO higher. Traders are positioning ahead of a teased LayerZero ecosystem event scheduled for February 10, 2026.

The clearly defined date has created a countdown effect, encouraging pre-emptive buying. In slow market conditions, assets with identifiable upcoming catalysts often attract disproportionate capital.

As demand increased, ZRO broke above the $2.20 resistance that had capped previous rallies. This breakout triggered short liquidations worth roughly $236,000, adding forced buying pressure.

LayerZero’s futures open interest surged by more than 30% in a single day, signalling fresh leverage entering the market. Momentum indicators reflect this intensity, with the RSI reaching extreme overbought levels.

LayerZero Price Forecast

The LayerZero price forecast now hinges on whether ZRO can maintain its breakout structure. The $2.20 level is the most important area for traders to watch in the near term.

Holding above this zone would confirm former resistance as new support. If that support holds, the next upside targets sit near $2.60 and $2.70, where prior liquidity zones emerge.

A strong continuation driven by event-related news could even open a path toward the $3.00–$3.40 range. On the downside, failure to hold $2.20 could trigger a short-term correction.

In that scenario, traders should monitor support between $1.80 and $2.00. The sustainability of the current bullish momentum will depend on follow-through buying and concrete announcements around the upcoming LayerZero event.