LayerZero (ZRO) Price Stabilizes Despite Token Unlock Pressure

I observe that LayerZero (ZRO) is currently trading at approximately $1.72, reflecting a 1.18% increase. Technical analysis indicates oversold signals, which could suggest a short-term rebound. However, the recent token unlock involving 25.71 million tokens has significantly increased the circulating supply by 23%, exerting downward pressure on the price. This token unlocking event appears to have created a supply glut, diminishing the token's scarcity and potentially depressing its market value. Despite the oversold technical conditions, the increased circulating supply might hinder a sustained price recovery unless demand substantially outweighs the added supply. Investors should approach with caution, considering the potential for further declines if market sentiment worsens. Given these factors, the outlook for ZRO remains cautious. The oversold signals could trigger a short-term bounce, but the impact of the token unlock suggests limited upside dominance at this stage. Monitoring any upcoming development news or shifts in demand will be crucial to determine if a genuine bullish reversal can set in beyond the technical oversold conditions.