LayerZero [ZRO] fell about 7% over the last 24 hours, trading near $1.67 at press time.
The pullback arrived as Token Terminal data showed a sharp expansion in Transfer volume.
When transfer activity spikes into weakness, it can reflect faster supply rotation and distribution.
Transfer flows turned noisy
Token Terminal placed LayerZero’s Transfer volume at $164.9 billion on a 3-year rolling basis.
The chart also showed heavier spikes since late 2025, versus earlier periods.
That mattered because higher transfer throughput often appears when holders reposition into volatility. Even so, transfer volume alone cannot confirm selling without exchange-flow data.
That shift set up a clearer technical test on the daily chart.
On TradingView’s Coinbase chart, ZRO closed at $1.664 on 16 February 2026. Price also slipped under key Exponential Moving Averages on the same timeframe.
The 100-day EMA sat near $1.676, while the 20-day EMA hovered around $1.802. Reclaiming those levels could stabilize short-term sentiment.
Until then, the demand zone around $1.60 stood out as the next decision area. A clean hold there could trigger a reaction bounce.
Demand zone faces a real test
Liquidity Heatmaps show a $422k cluster sitting near the $2.0 level. Just above, a broader demand zone forms around $1.6.
That area now becomes critical.
If the price continues to slide, $1.6 could act as the next defensive line. The Liquidity pockets at the $2.0 psychological level affirm it as the next target after the anticipated reversal.
However, context complicates the setup.
Unlock timing raised the stakes
A scheduled token unlock is approaching on the 20th of February. From the past observations, unlock events increase circulating supply, a bearish market sentiment.
When unlock timing aligns with weak structure, demand zones face added strain. If sellers front-run the unlock, the $1.6 level could be tested aggressively.
What happens next?
LayerZero [ZRO] is under pressure. Transfer volume has surged. The structure broke below a key moving average, and the ROI shrank sharply.
The $1.6 demand zone now carries heavy responsibility.
If buyers absorb supply near that level, a short-term bounce could emerge. If not, bearish momentum may extend beyond the current range.
For now, the edge belongs to sellers. The next reaction will define whether demand still has strength left.
