LEO Token Price Analysis: Can bulls drive the token’s price back from the demand zone?

• Token has shown bearish actions in previous sessions.
• LEO is trading above the demand zone on the daily time frame.

So far, 2022 has been an eventful year for the LEO token. While the whole crypto market has been losing value and decreasing since the beginning of the year, LEO has gained, reaching an all-time high of $8.04 on February 8th. However, the token has been on a downward trend since then, with bears in command of the trend.

On the daily chart, LEO token is trading near its demand zone

The Token’s overall outlook is bearish, with bears driving the token price down, forming lower highs and lower lows. According to the daily chart, Leo is currently trading at $3.47, down -1.25% in the last 24 hours. It is now trading below its 50 and 200 EMA moving averages. (Red line is 50 EMA and the blue line is 200 EMA). The token is constantly facing resistance at the 50 EMA and is unable to sustain above it. In the coming days, we may see token finding support near the demand zone.

Relative Strength Index: The asset’s RSI curve is currently trading at 38.87, indicating that it is in the oversold zone. The RSI curve has crossed below the 14 SMA, indicating bearishness. The price of the token has fallen in recent days, causing the RSI curve to show a bearish signal. If the token’s price continues to fall, the RSI curve value may go below 30, indicating a strong oversold zone.

Analyst view & Expectations

Since the token is trading above its demand zone, we may expect it to take support from the demand zone and rebound. For the time being, investors should avoid buying and instead wait for bulls to gain control of the trend. Intraday traders, on the other hand, have a good opportunity to go short if the token falls below the demand zone and book profits depending on their risk-to-reward ratio.

According to our current LEO price forecast, the value of LEO is expected to climb by 7.14% over the next four days, reaching $ 3.67. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 30. (Fear). Over the previous 30 days, LEO has 12/30 (40%) green days and 3.86% price volatility. According to our LEO forecast, now is not the time to buy LEO.

Technical Levels

Major support: $3.33

Major resistance: $3.62 and 50 EMA on daily chart.

Conclusion

The bears appear to be in command of the trend. Bulls should be able to bounce the token price from the demand zone if they want the trend to continue in their favor. Investors should wait for a clear signal and then act accordingly. 

Disclaimer: The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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