Lido [LDO] headed to a supply zone – Will shorting yield gains?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion

Lido [LDO] posted a powerful weekly return by the point of writing. It had rallied over 12% prior to now seven days, as per CoinMarketCap. Put in another way, it has reversed virtually all of the losses incurred in mid-Could after dropping from $2.5 to $1.95. 

How a lot are 1,10,100 LDOs value at this time

Sadly, the value motion was headed to the identical bearish zone and value ceiling it encountered in mid-Could. With a weak Bitcoin [BTC], >27k, sellers might regain management and lengthen positive factors to decrease assist ranges. 

Are shorting positive factors imminent?

Supply: LDO/USDT on TradingView

Regardless of current fluctuations, LDO’s market construction on the four-hour chart was on an uptrend momentum, as illustrated by the ascending channel (orange). The $2.50 – $2.77 provide zone (pink) has been a essential value ceiling since late March.

Moreover, the availability zone may be thought-about to have a bearish order block (OB) on the four-hour chart, shaped on 18 March. Thus far, the availability zone has inflicted three value rejections since late March. LDO might face one other value rejection on the provide zone if the pattern repeats. 

The drop might ease on the vary low of $2.2 or the demand zone of $1.89 – $2.06 (cyan). The demand zone was additionally a bullish OB shaped on the 12-hour chart on 19 January. If the demand zone cracks, too, LDO might settle at $1.62. 

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The Relative Power Index (RSI) headed to the 50-mark, whereas the On-Steadiness Quantity (OBV) fluctuated since mid-Could. This highlighted ease in shopping for stress and wavering demand. 

Provide on exchanges spiked

Supply: Santiment

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From 4 June, provide on exchanges witnessed a dip – a decline in promoting stress. Alternatively, the availability outdoors exchanges elevated – a short-term accumulation pattern for LDO. The shopping for stress was matched by an uptick in day by day lively addresses, indicating improved quantity. 

However, a weak BTC alongside the bearish zone above $2.5 might complicate issues for bulls. 

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