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Analysis

Lido price action shows bulls can enter at these levels

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Since May, Lido DAO token has traded between the $1.57 and $2.56 levels, the mid-range mark at $2.07 was also a notable level.
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Lido price action shows bulls can enter at these levels
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • LDO buyers could drive a bullish reversal in the $1.6-$1.8 region.
  • The on-chain metrics suggested an onset of steady selling pressure was imminent.

Lido [LDO] saw a lukewarm performance on the price charts over the past month. The token has lost close to 26% from its high of $2.49, but the price action showed the bulls have a chance to reverse these losses.

Realistic or not, here’s LDO’s market cap in BTC’s terms

In early 2023, LDO saw a massive pump where prices surged from $0.9 in December to reach $3.3 in mid-February. During the rally, the $2.6-$2.7 zone was established to be significant. The bulls were unable to defend it and a downtrend was initiated in mid-April. But this trend lost strength in May.

The three-month range formation showed LDO lacked a long-term trend

Lido [LDO] prices were just above a strong demand zone- should buyers be interested?

Source: LDO/USDT on TradingView

Since May, the Lido DAO token has traded within the $1.57 and $2.56 levels of support and resistance. The mid-range mark at $2.07 was also a notable level. To the south, there was a bullish order block at $1.8, highlighted in cyan.

LDO was trading at $1.84 at the time of writing. A descent into the bullish OB or the range low would offer a long-term buying opportunity. Bulls can wait for a lower timeframe bullish structure break before entering.

Yet, there was a wide chasm between $1.84 and $1.56 that measured a 15% drop. Hence, buyers must manage their position sizes and risk carefully.

The RSI was below neutral 50 since 21 July, showing bearish momentum had the upper hand. The OBV also showed seller dominance. A phase of LDO accumulation has not been witnessed yet based on the OBV.

On the 4-hour chart, the most recent lower high was at $1.94. Therefore, buyers can consider a flip of this level to support as evidence that price action was bullish once more.

On-chain metrics signaled a wave of selling could be around the corner

Lido [LDO] prices were just above a strong demand zone- should buyers be interested?

Source: Santiment

The 90-day mean coin age was in a strong uptrend in June and July. Toward the end of July, the metric took a nosedive. The supply on exchanges of LDO was also climbing higher since mid-July. Together, it showed selling pressure has begun or was about to begin. This could force prices to drop to $1.6 or lower.

How much are 1, 10, or 100 LDO worth today?

The MVRV ratio was slightly negative, which highlighted an undervalued asset. Yet, the other metrics showed seller dominance can be expected.

The price action highlighted two areas where bulls were expected to put up a stiff defense. With these findings in mind, buyers can exercise caution and not get greedy even if LDO fell to the range low.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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