Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Defense of the $2 support level could propel Lido on another bullish rally.
- A positive funding rate highlighted buying opportunities.
Lido’s [LDO] 9% gains over the past 24 hours saw the price bounce off the critical $2 support level. This brought the four-day bearish slide from the $2.46 resistance level to an end.
Read Lido’s [LDO] Price Prediction 2023-24
Despite the critical support level rebound, LDO isn’t in the all-clear yet. Bulls will need to sustain the buying pressure over the coming days or risk giving away precious price gains.
The $2 support level rescues bulls
Source: LDO/USDT on Trading View
Lido has gone on two strong bullish moves over the last three weeks. The first move in the first week of July took it above the $2 resistance level at the time. Although a brief retracement and price consolidation reversed those gains, bulls weren’t deterred and another strong rally reclaimed the $2 level.
Again, the bears waited patiently for a price reversal at the next resistance level ($2.46). This led to 18.3% losses for Lido between 15 July and 18 July. However, the strong bullish defense at the $2 level prevented further losses.
The successful defense of the $2 level could herald another upward move. The Relative Strength Index (RSI) moved above the neutral 50 and the On Balance Volume (OBV) registered an uptick to hint at the possibility of significant short-term gains for buyers.
On the other hand, another pullback by Bitcoin under $30k could see LDO drop below $2. This will invalidate the bullish proposition and open the opportunity for sellers to drive the price toward the $1.76 support.
Positive funding rates highlighted longs advantage
Source: Coinglass
On-chain metrics from Coinglass showed a significant advantage for buyers. The positive funding rate over the past week highlighted the buying opportunities for longs.
How much are 1,10,100 LDOs worth today?
Similarly, longs held a greater portion of the open LDO contracts with 51.82% against 48.18% for shorts. This bodes well for bulls in the short term, as signs pointed toward bullish sentiment in the market.
Source: Coinglass
