• LayerZero acquires Stargate, expanding its cross-chain ecosystem and liquidity management capabilities.
• ZRO trades near $1.96, targeting $2.20 with Fibonacci support levels.
• Derivatives volume rises 5.38%, showing growing trader enthusiasm and institutional participation.

LayerZero has announced that Stargate DAO has approved its intended acquisition of Stargate. The move adds to LayerZero’s leading position in cross-chain infrastructure.

The agreement represents a significant turning point for this ecosystem, where token performance correlates with overall adoption objectives. At the time of writing, ZRO is changing hands at approximately $1.96 with $2.20 as the next target.

LayerZero Ecosystem Gets Larger with Stargate Acquisition

The implications of this takeover for the LayerZero ecosystem are tremendous. Stargate has always been the bridge for value transfer across various blockchains in a seamless manner.

With the complete takeover, LayerZero can begin to provide this functionality in its network stack. The acquisition also boosts liquidity management and increases the protocol’s scaling capacity.

The LayerZero team remarked that the acquisition makes the project a cornerstone in decentralized finance. The infrastructure is now four years old. But the team believes it is time to deploy it towards practical application, which will enable further adoption. The Stargate integration will bring a user-facing interface to LayerZero. This will further consolidate ZRO as the governance token of the ecosystem.

Technical Price Analysis for ZRO

Technically, ZRO is trading above the significant support area of $1.90. Fibonacci retracement levels point to two major resistance levels. The first is $2.20, with the second one ($2.42) as the extension target. Those levels are in close correlation with the recent rally efforts that ended flat in the middle of August.

The VWAP session figures also attest to the resilience of ZRO below the $1.94 area, indicating that current price behavior is just holding at fair value. The congruence of VWAP and Fibonacci support solidified the $1.90-$1.95 area as a key support point for further price gains.

VAWP and Fib. Source: TradingView

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ZRO Momentum Indicators Report

The momentum indicators suggest a neutral outlook. The RSI is at 47, indicating that the market conditions are neither overbought nor oversold, leaving ample space for volatility without exhaustion. The reading has left ample space for volatility without exhaustion.

The MACD line is crossing the zero line in a flat position, indicating a lack of firm direction. No obvious bullish divergence can be seen yet. However, the lack of bearish pressure implies that bulls are ensuring that the token’s price does not drop below key support areas. A positive crossover could impact the token’s direction towards the $2.20 resistance barrier.

MACD and RSI. Source: TradingView

A Spike in ZRO Derivatives Market

The derivatives trading volume has also increased in line with price action on the spot market. Futures volume traded rose 5.38% to $108.97 million, which is a sign of higher trading enthusiasm. Interest in ZRO derivatives increased 0.69% to $56.98 million as institutional traders showed continuous positioning.

The changes in futures activity are important because they indicate that traders are betting on whether ZRO will trend towards the upside or downside.

Over the short term, ZRO continues to hold the support at $1.90. This is followed by a test of the resistance at the $2.20 level. A bullish move above this point would provide a clear path towards $2.20, and it could even reach $2.42. In contrast, a fall below $1.85 would undermine the bullish prediction.

Source: Coinglass

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