LayerZero price surges post L1 debut, eyes 45% upside on cup and handle breakout

LayerZero price rallied as much as 45% on Wednesday following the company’s announcement that it will launch its own layer 1 blockchain, named Zero, later this year.

According to data from crypto.news, LayerZero (ZRO) shot up 45% to an intraday high of $2.44 on Wednesday, Feb. 11, emerging as the highest gainer among the top 100 cryptocurrencies before stabilizing a little lower at $2.39 at press time.

The native token and governance asset of the omnichain interoperability protocol LayerZero rallied after LayerZero Labs unveiled plans to launch its own layer 1 blockchain named Zero.

Slated to go live by fall this year, the network is said to be scalable up to two million transactions per second with transaction costs reduced to nearly a millionth of a dollar. It achieves this by utilizing zero knowledge proofs to separate transaction execution from verification.

The ZRO token will be used to provide interoperability between the three zones of the new network and across more than 165 blockchains. This could significantly boost the utility of the token as adoption scales.

Some of the major entities that have already shown interest in the project are Google Cloud, the Intercontinental Exchange, the parent firm of the New York Stock Exchange, and the Depository Trust & Clearing Corporation, each exploring the protocol’s capabilities.

Besides the technological roadmap, another factor that also drove demand for the ZRO token was strategic investments from Citadel Securities, ARK Invest, and Tether Investments, the investment arm of the leading stablecoin issuer Tether.

Such investments from major financial players often bring massive exposure to the project, fueling strong rallies at least in the short term.

On the daily chart, the LayerZero token is close to breaking out of the neckline of a multi-month cup and handle pattern at around $2.4. Cup and handle patterns are one of the most popular bullish patterns in technical analysis.

A look at other technical indicators has also presented a more grounded perspective of the bullish outlook. Notably, the MACD lines have formed a bullish crossover while the Supertrend line has moved under the price level, flashing a green signal.

Hence, LayerZero is likely to continue its rally to its May 2025 high of $3.34 and successively to $3.6, which is the target calculated by adding the height of the cup formed to the neckline level. The target would mark over a 45% increase from the current price level.