Lido’s range persists – Can shorting yield gains?
Lido price action was stuck in the lower price range amidst weak BTC. A shorting opportunity is likely at this level...
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Lido’s price was constricted to the lower price range.
- Bearish bias prevailed across spot and futures markets at the time of writing.
After losing hold of the $2 price level, Lido’s [LDO] attempts to reclaim the psychological has been constrained at $1.95. Since late July, the altcoin has faced several price rejections at $1.95, but entered a narrow price range between $1.95 – $1.80. The elevated market uncertainty constricted price action on the lower range; short-sellers can consider this level for potential gains.
Is your portfolio green? Check out the LDO Profit Calculator
Lido turned mid-range to a resistance
For the last few days, the mid-range of $1.88 has been flipped to a roadblock, forcing a retracement towards the range-low ($1.8) whenever prices graced it.
The price chart indicators recorded weak readings at the time of writing. For example, the Relative Strength Index’s value was 46 and has stayed below 50 for the past seven days. It demonstrates the weak buying pressure over the same period.
The Chaikin Money Flow (CMF) dipped below the zero mark and struggled to reclaim it. It illustrates muted capital inflows and an overall bearish inclination. With a weak Bitcoin [BTC], LDO could face another rejection at the mid-range ($1.88).
If so, shorting the altcoin at the mid-range, with a take-profit target at the range-low ($1.8), could offer modest gains.
An H4 candlestick session close above $1.90 will invalidate the short set-up. Such a move could tip LDO to retest the range-high of $1.95.
Bearish bias prevailed
According to LDO’s live market data from CryptoMeter, the spot market was bearish overall, with sell volume dominant at over 52%. It shows more traders were shorting the asset.
How much are 1,10,100 LDOs worth today?
The same sentiment was prevalent in the futures market. According to Coinglass, LDO’s Open Interest rates tanked by 3%, up from $63 million on 2 August to about $53 million at the time of writing. It indicates a drop in demand for LDO in the futures market – a bearish inclination.
So, the retest of the mid-range could present a shorting opportunity, especially if BTC weakening persists.
