The ZRO token on the Binance exchange surged sharply last week, briefly testing the 2.6 USDT level.
The rally was driven by a confluence of factors. First or all, industry media wired that Ark Invest CEO Cathie Wood is joining the LayerZero project.
There were also reports that the project secured investments from Tether and Citadel.
Additionally, crypto experts highlighted that LayerZero Labs announced the development of Zero, a high-performance Layer 1 (L1) blockchain network designed with institutional investors in mind.
ZRO was in decline in nine out of 12 months last year. Q1 witnessed the most bearish sentiment, with the token dropping 25% in January and another 30% in February.
ZRO regained its footing in January 2026, when the price shot up over 40%, paring most of the losses from the final three months of last year.
Still, the near-term outlook remains uncertain.
Technically, while the daily chart points to a bullish trend – drawing on the slope of the regression channel, the price action has slipped below the 200-day MA and is attempting to breach local support near 1.50-1.55 USDT.
In the event of a confirmed breakdown, the bears could set their sights on 1.45 USDT, the lower bound of the current trading range.
The longer-term weekly chart clearly shows that the channel has a negative slope, with the price action bouncing off resistance and moving along the trendline.
Near-term, a retest of 1.20 USDT – around the levels seen in November-December 2025 – could be in the cards.