ZRO soars 22% as LayerZero proposes to acquire Stargate Finance
Key takeaways
- LayerZero’s ZRO outperformed the market, adding over 20% to its value in 24 hours.
- The rally comes after LayerZero submitted a proposal to acquire Stargate Finance.
ZRO rallies on Stargate acquisition proposal
ZRO, the native coin of the LayerZero ecosystem, is one of the best performers in the market over the last 24 hours. The coin added 22% to its value during that time, allowing it to hit the $2.5 mark for the first time since May.
The rally was fueled by LayerZero’s proposal to acquire Stargate Finance (SGT). LayerZero Foundation proposed a $110 million acquisition of the Stargate bridge to the Stargate DAO.
With the proposal now in place, STG token holders will soon vote on the proposal. If approved, the STG token would be discontinued, and holders could swap STG for ZRO. SGT also rallied by over 15% since the announcement, as the proposal already has a 70% approval threshold. The proposal stated that,
“This offer is designed to accelerate both Stargate and LayerZero, giving Stargate the resources to ship on an aggressive roadmap that expands its prerogative outside of bridging, while tying an incredible, revenue-generating protocol that touches the end-consumer deeper into the LayerZero ecosystem.”
ZRO targets $2.8 as bullish momentum remains
The recent rally has seen the ZRO/USDT pair become bullish, with technical indicators pointing to potential upward movement. However, the pair is inefficient, suggesting that ZRO could temporarily dip to grab liquidity before rallying higher.
The RSI of 79 shows that ZRO is heading into the overbought region if the rally continues. The MACD lines are within the positive territory, indicating that buyers are currently in control.
If the rally persists, ZRO could target the next resistance level at $2.8 over the next few hours or days. An extended bullish trend could pave the way for ZRO to hit the $3 psychological mark.
However, if the market undergoes a correction or retracement, ZRO could drop to the first liquidity region at $2.0. Failure to defend this liquidity zone would see ZRO retest the TLQ at $1.89.
