LayerZero surges 23% – Why ZRO’s price rally faces THESE risks

After losing $2 support and falling to a low of $1.8, LayerZero [ZRO] made a strong comeback amid a broader market trend reversal. The altcoin successfully defended the $2 level and climbed to a local high of $2.25 at press time, after gaining 23% on the daily charts. Is LayerZero's demand returning? The market largely recovered, driven by renewed interest in the derivatives. Previously, ZRO, like most altcoins, saw a collapse in derivatives, which intensified downside pressure. Now, it seems the trend has reversed. As a result, the altcoin’s Open Interest (OI) surged 31% to $275 million, while the derivatives volume rose 63% to $336 million as of writing. The rising OI alongside volume implied increased market participation and steady capital flow into new positions.

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