Lido bounces back — Will LDO bulls push for further gains?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Lido flipped the $1.6 price level to support with a 10% rally.
- Buyers pushed for more gains with a 53.16% share of the long/short ratio.
Lido [LDO] produced a strong 10% rally from the $1.5 price zone to flip the $1.6 resistance to support the 12-hour timeframe. This came after a recent report by AMBCrypto highlighting Lido’s dominant position in the liquid staking sector.
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Thus, Lido’s 84% market share based on assets staked was bound to translate to a rise in its native token. However, it remains to be seen if this bullish rally will lead to further gains.
Meanwhile, Bitcoin [BTC] consolidated above $28k after it surged massively from sub-$27k prices.
LDO buyers rallied to halt selling pressure
LDO’s bearish structure has kept the coin under constant selling pressure on the higher and lower timeframes. However, bulls seized the opportunity presented by the bullish sentiment in the market to post decent gains.
The 10% price pump took LDO above the $1.6 resistance with bulls looking to consolidate above the level before pushing for more gains.
The significant bullish strength in the short term was highlighted by the Relative Strength Index’s (RSI) reading of 60. Similarly, the Chaikin Money Flow (CMF) stood at +0.10 to reveal good capital inflows.
If bulls are able to consolidate above the new support level at $1.6, a 9% profit opportunity exists before the next hurdle at the $1.76 resistance. Nonetheless, the presence of active sellers could see another retracement in the short term which could take LDO back below the $1.6 price zone.
Buyers poised for short-term gains
How much are 1, 10, or 100 LDO worth today?
The exchange long/short ratio revealed the bullish dominance. Per Coinglass, longs held a 53.16% share of the open contracts in the four-hour timeframe. This suggested that buyers were in the majority which could see Lido record further yields.