Why LayerZero and Canton are surging while Bitcoin dips: An analysis
Discover why LayerZero (ZRO) and Canton (CC) are booming while Bitcoin consolidates. Get insights into the price pumps and potential targets.
LayerZero (ZRO): A Bullish Breakout Despite Massive Token Unlock
Against all expectations, LayerZero’s rally seems to be fueled by an event that investors typically dread: a massive token unlock. The protocol recently released approximately 25.71 million ZRO, representing over 6% of the circulating supply. In theory, such a supply increase creates immediate selling pressure (a bearish trend). Yet, the market has absorbed this liquidity with surprising strength.
Currently trading in a zone around $1.96, ZRO is showing technical signs of bullish continuation. The price has bounced to test the resistance of its descending channel. Indicators are turning green: the Gaussian channel has flipped bullish and, although the RSI has entered overbought territory, the momentum suggests buyers remain in control. If ZRO manages to close above its current channel, analysts are targeting a quick move to $2.50. Conversely, a rejection here could send the token back into consolidation.
Canton (CC) Targets $0.20 Thanks to Institutional Adoption
Meanwhile, Canton (CC) is benefiting from a powerful fundamental narrative: real-world asset tokenization (RWA) and institutional adoption. Unlike a short-lived speculative pump, CC’s rally appears supported by real utility and growing demand for on-chain collateral mobility. The token is currently trading around $0.125 – $0.131, supported by a favorable technical structure.
However, the price reality tells a different story. Indeed, CC is now facing its daily bearish order block that pushed it toward $0.1 this Monday. Moreover, the CVD is displaying a significant negative candle worth considering.
Selling pressure has taken over in recent days and this bounce could be short-lived. To reignite the rally, CC must break through this order block at $0.154. Otherwise, a return to $0.075 is more likely.
Bitcoin and Ethereum in Danger: Is It Time for Rotation Into Alts?
While ZRO and CC are performing, the market giants are suffering. Bitcoin (BTC) has given up the $90,000 level (trading around $89,400), dragging Ethereum (ETH) below the $3,000 mark. This pullback is exacerbated by macroeconomic factors, notably tensions over tariffs and volatility in Japanese bonds, which are prompting investors toward caution (risk-off mode).
This performance divergence between the leaders and certain mid-caps like LayerZero or Canton could signal a temporary capital rotation. Investors are seeking returns where volatility remains favorable. The crucial question for the coming days is now posed: if Bitcoin fails to quickly reclaim $91,000, will the bearish pressure eventually crush the momentum of ZRO and CC, or can these tokens continue to outperform in an uncertain market?
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Charles Ledoux
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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