ZRO token unlock: LayerZero slides 4% as 25.71M tokens hit circulation
LayerZero’s token ZRO fell about 4% on Monday, extending a roughly 9% decline from the prior week. The move comes ahead of a major scheduled ZRO token unlock.
Tokenomist data shows LayerZero will unlock 25.71 million ZRO on Monday, equal to about 4.6% of total supply. Most unlocked tokens are allocated to strategic partners and core contributors. A smaller buyback component is planned: about 1.67 million ZRO (0.3% of the released amount) will be repurchased.
Derivatives activity picked up sharply before the event. CoinGlass reported futures trading volume up 552% over the past 24 hours to $248.65 million, while Open Interest rose 4.52% to $80.87 million—signs of growing speculative positioning ahead of the unlock.
However, bullish positioning appears to be weakening. Perpetual futures funding rates fell to 0.0061% from 0.0121% the day before, suggesting reduced demand for leveraged longs.
Technically, the bearish structure remains intact. ZRO is below the 50-day EMA near $0.957, following a late-April “death cross.” RSI is around 36 (bearish but not oversold). Momentum indicators (MACD) remain below zero.
Key levels: support sits near $0.734. A breakdown could accelerate selling toward a downside target around $0.532 (roughly 25% lower). Overhead resistance is clustered near $0.945 and $0.957. A daily close above that resistance would be the first sign of improved outlook for ZRO.
Bearish
This is bearish for traders because the ZRO token unlock directly increases short-term circulating supply, which often pressures price when the market is already in a downtrend. The article highlights exactly that setup: ZRO is falling (about -4% on Monday, ~-9% over the week) while a sizable unlock of 25.71M tokens (≈4.6% of total supply) approaches.
Even though derivatives activity surged—futures volume +552% and Open Interest +4.52%—the funding rate weakened (0.0061% vs 0.0121%), which typically signals less enthusiasm for new leveraged longs. That combination (higher speculation but weaker bullish positioning) is consistent with pre-unlock “sell-the-news” dynamics.
Technically, ZRO remains below the 50-day EMA (~$0.957) after a death cross, with momentum indicators still bearish. The key support at $0.734 is also clearly defined; if it breaks, the probability of continuation selling toward $0.532 rises.
Historically, major unlocks frequently create short-term volatility and can extend downtrends if demand fails to absorb the added supply. Longer-term, the market could stabilize if post-unlock buying emerges (for example, evidence of sustained demand to offset unlock flows). But the immediate bias remains bearish until ZRO reclaims the $0.957 area and shows a constructive daily close.