Lido: Sideway structure persists after price rejection
Lido failed to clear its range-high ($1.95) during 7-10 August recovery, setting sellers to seek re-entry. Will short sellers seek more ground?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Lido faltered near the range-high of $1.950.
- Bearish sentiment prevailed in spot and futures markets.
Lido [LDO] short-sellers could seek more ground into the weekend as bearish sentiment prevailed across spot and futures markets. The market recovery, led by Bitcoin [BTC] between 7-10 August, saw LDO post >7%, rallying from $1.76 to $1.94.
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However, BTC’s reversal before and after the July CPI data announcement saw LDO record some losses after facing price rejection near its range-high.
Will sellers push Lido lower?
Since late July, Lido’s price action has been stuck in a sideways structure of $1.80 – $1.950. The faltering near the range-high ($1.95) tipped sellers to target the mid-range ($1.88). At the time of writing, sellers breached the mid-range too, but Lido didn’t register an extra downside.
But the Relative Strength Index and Chaikin Money Flow recorded negative readings underscoring the bearish sentiment post-July CPI announcement. If the sentiment persists, LDO could drop further to the range-low ($1.80) or face rejection at the mid-range before heading lower.
A candlestick session close above the mid-range, especially on the higher timeframe charts (12/1D/1W), could show bullish intent. Such a move, alongside positive readings from RSI and CMF, could make a retest of range-high feasible.
Bearish sentiment prevailed
According to crypto derivative data platform Coinglass, the Exchange’s Long/Short Ratio in the 4-hour timeframe printed a bearish inclination. It shows that more market participants on the derivative side were shorting the asset.
How much are 1,10,100 LDOs worth today?
The same negative readings were recorded on the liquidation side too. According to Coinalyze, another crypto derivative data tracking platform, Lido’s long positions suffered >20k of liquidations compared to <1k of short positions in the last 24 hours.
The above data points demonstrate short-term bearish sentiment across futures markets. So, Lido could slip towards range-low in the coming hours/days if the bearish inclination extends.
