Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bulls cleared the $2.012 obstacle but have more hurdles ahead.
- Sentiment flipped positive amidst a heightened accumulation trend.
Lido [LDO] was an outlier on the weekly front, posting double-digit gains of about 16.82%. In the same period, a considerable section of the market was in red, with Bitcoin [BTC] recording a 2.6% loss.
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LDO’s rally was partly boosted by its recent vote for the next iteration on Ethereum.
In addition, BTC reclaimed its $27k on the same day, 12 May, pushing the LDO token into a massive rally. It hiked over 40%, rising from $1.579 on 12 May to $2.301 on 16 May.
But BTC dropped below $27k again as of press time and could derail further uptrend momentum for LDO bulls. Here are some key levels to consider.
Can bulls sustain the rally?
Source: TradingView
Since 19 January, the $1.890 – $2.056 support zone (cyan) remained steady, allowing bulls to front recovery whenever the price slumps to this level. But the support cracked on 1 May, exposing LDO to more selling pressure.
The drop steadied at $1.589, and price action in the past few days chalked a double-bottom formation with a neckline just below $2.012. On 15 May, the price broke above the neckline resistance, setting LDO for an extra rally.
But the rally hit a $2.243 resistance, which could derail further uptrend if BTC remains below $27k. Ergo, sellers could drag LDO’s value to the former support zone (cyan) of $1.890 – $2.056.
Conversely, bulls could attempt to push forward only if BTC reclaims $27k and surges. Such a move could see LDO smash the $2.243 hurdle and target the former mid-range of $2.43. If they handle the mid-range level, the next target will be the range high of $2.84.
Meanwhile, the RSI’s value stood at 66 – a bullish signal showing massive buying pressure in the past few days. Similarly, the Chaikin Money Flow was above the zero mark, which suggests positive capital inflows into the LDO market.
Investors’ outlook improved; volume surged
Source: Santiment
How much are 1,10,100 LDOs worth today?
According to Santiment, LDO’s supply outside exchanges spiked in the past few days, confirming the accumulation of LDO tokens. In addition, the surge in volume confirms the increased buying pressure seen in the same period.
The rally even saw the weighted sentiment, which has been negative for most of May, flip into positive on 15 May. But BTC’s movements could spoil the party for bulls, and it is worth tracking this front before making moves.
