Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- Lido token maintained its robust uptrend on the upper timeframe charts.
- The $2.2 and $2.55 ranges have been vital previously two weeks, and bears have refused to yield $2.55-$2.7 thus far.
Lido Finance [LDO] token has hovered beneath a key resistance degree since mid-November. A whale transferred 500k tokens to Binance not too long ago, sparking worries of a spike in promoting strain.
Lido additionally gained from the rising reputation of Blast, an upcoming layer 2 blockchain. The inflow of ETH deposits might elevate Lido’s stake management over Ethereum.
With the technical evaluation additionally pointing towards bullishness, ought to traders look to purchase LDO in anticipation of one other rally?
The $2.2 help has been resolutely defended previously three weeks
Supply: LDO/USDT on TradingView
The three-day chart confirmed an unceasing march northward for LDO since mid-October. The $2.55 resistance zone was not but breached and has been a key degree for the bears since April. The latest rejection took Lido costs again towards $2.2.
Nonetheless, the market construction remained bullish and the RSI confirmed robust upward momentum on the upper timeframe chart. The On-Steadiness Quantity (OBV) climbed larger in November to indicate
The Fibonacci retracement and extension ranges (pale yellow) highlighted that $1.91 and $1.71 may very well be essential help ranges ought to $2.2 fail within the coming weeks. Then again, a transfer previous the native highs at $2.65 would possible see a rally to $3.4 unfold.
The declining lively addresses might trigger fear amongst traders
Supply: Santiment
The MVRV ratio of LDO reached a excessive on 22 November not seen since March. This was adopted by a wave of profit-taking from holders which noticed LDO costs slide to the $2.2 space.
On the time of writing, the MVRV ratio was nonetheless excessive and will tempt extra holders to guide earnings.
Is your portfolio inexperienced? Verify the LDO Profit Calculator
The imply coin age has trended larger since early November, exhibiting network-wide accumulation. On the identical time, the age-consumed metric remained quiet.
This confirmed a surge within the motion of dormant tokens that has not been seen thus far. A big spike can be an early signal that holders might start to promote their LDO holdings which might result in a drop in costs.