Lido reclaims $2, more gains ahead?
Despite the pullback, Lido remained above $2, highlighting the strength of the current bullish rally.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bullish charge took Lido above $2.
- CMF highlighted the strong capital inflows.
Bitcoin [BTC] easing off from the $31k price zone was reflected in minor dips for altcoins. Lido’s [LDO] bullish rally saw it climb above the $2 price level before the latest pullback.
Read Lido’s [LDO] Price Prediction 2023-24
With LDO trading at $2.16, as of press time, bulls will be hoping to keep price above $2 to continue its upward trend and possibly flip Lido bullish with a break of the $2.46 resistance level.
Bulls finally reclaim $2
The $2.46 resistance level has acted as a major deterrent to bullish gains after it was flipped from support to resistance in mid-April. Price has suffered two significant rejections at the level in mid-May and early June.
With the market’s bullish sentiment spurring buyers, Lido rallied from the $1.76 support level to break above $2 on 1 July. Furthermore, bulls advanced quickly to register 9.4% gains from the $2 support before the recent pullback.
The pullback could offer a retest of the $2 support level, presenting new buying opportunities for bulls with the $2.46 level in sight. On the flip side, a drop below $2 will invalidate the bullish proposition, especially if BTC can’t hold on to $30k.
The eased buying pressure occasioned by Bitcoin’s pullback saw the Relative Strength Indicator (RSI) drop out of the overbought zone. However, it remained above the neutral 50, with a reading of 61 to denote the active presence of buyers.
The Chaikin Money Flow (CMF) was even more bullish, rising to +0.32 before a slight dip to +0.29. This highlighted strong capital inflows for Lido.
Speculators remained bullish on Lido
How much are 1,10,100 LDOs worth today?
Lido’s ascent above $2 on 1 July was reflected in the Open Interest rising by $20 million, per Coinalyze. This showed strong backing for Lido’s bullish run by market speculators. Although the OI eased at press time, the overall sentiment in the futures market remained bullish.
Since 29 June, the Funding Rate has been positive. Ergo, Lido buyers can look to advance the bullish charge with more long opportunities on the horizon.
