ZRO Nears $2.20 as LayerZero Buybacks Fuel Rally

The price of ZRO, the native token of LayerZero, is making a strong recovery, now trading above $2 and approaching a key resistance level at $2.20. The rally has pushed ZRO above its major moving averages, signaling a shift in market structure. Recent token buybacks by LayerZero have added fuel to the uptrend, with the protocol purchasing an additional 162,000 ZRO tokens worth approximately $347,000. This brings the total buybacks to 2.538 million ZRO, valued at around $5.4 million.

LayerZero’s buyback mechanism is designed to create recurring demand for ZRO by directing ecosystem revenue toward token purchases. This strategy aims to establish a demand floor as network activity grows. The buybacks coincide with LayerZero’s ongoing infrastructure expansion, strengthening the token’s fundamental outlook alongside its recent price surge.

ZRO has surged from the $0.80, $1.00 range, reclaiming key levels such as $1.20, $1.35, and $1.65 before breaking through $2. The token is now testing the $2.20 resistance zone. A successful move above this level could extend the rally toward $3.00. However, momentum is becoming stretched, with the weekly Relative Strength Index (RSI) nearing 68, suggesting potential short-term consolidation.

The ZRO rally is also supported by the development of LayerZero’s ATLAS platform, which offers infrastructure for institutional and crypto markets. Venues can stake ZRO for higher fee rebates, and 75% of remaining ATLAS fees are used to buy and burn ZRO, potentially creating another source of demand. LayerZero’s support for over 165 blockchains and 900 applications further enhances its growth narrative.

The upcoming October 20 token unlock of roughly 23.6 million ZRO adds another supply test, making sustained demand crucial. The key question is whether the current momentum can overcome profit-taking and unlock pressures.