After the price increased by over 200% in the first quarter of the year, Lido encountered resistance and started to correct lower. The correction became broad, and the price tumbled to a four-month low last week.
Lido’s bulls have continued to suffer in the hands of the bears following a consistent price pull over the past two months.
The bulls have twice attempted to push the price out of the resistance trendline on the daily chart but they failed due to multiple rejections around that resistance line – which has equally been an entry area for the bears.
Last Friday, the price bottomed at the $1.57 level after declining for four weeks. The bulls have reacted to that level with a push towards the mentioned resistance line. We can see that the asset is already facing rejection as it nears the line. The bears are likely to resume pressure as soon as a retest occurs.
If those setups come into play again, we should expect the next swing low towards the yearly opening price before it bounces back. For the bulls to regain control, they need to surpass that trendline with a strong push. Otherwise, the bears will continue to dominate until the bulls overpower them.
The continuous decrease in the daily volume indicator is another pointer to the fact that the bears are still in control. An increase in the volume should indicate that the bulls are back in the market.
LDO’s Key Level To Watch
While LDO approaches a multiple resistance area, rejection is likely at the $2.3 resistance level. If the price significantly surpasses the crucial resistance line, the higher levels to watch are $2.6 and $3.
If the price rolls over again, the immediate support to watch is $1.85, then followed by $1.573 – now serving as a three-month low. The support levels for breakdown are $1.3 and $1.1.
Key Resistance Levels: $2.3, $2.6, $3
Key Support Levels: $1.85, $1.57, $1.3
- Spot Price: $2.1
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
