LDO Price Breaks $2 Support Level

LDO token is an ERC-20 token compliant with the Ethereum network. LDO is also used to reward various DAO users and activities. LDO price started its uptrend during the start of 2023, forming a high at $3.28 level giving a return of approximately 247% from the low of $0.95.

LDO price has broken the $2 support, which held the price previously several times, indicating a strong sentiment hovering over LDO price. Price retested the $2 level and took a downturn which was halted by increased participation of buyers on the $1.60 level. The previous candle closed with a longer bottom wick as the price faced huge rejection from the downside giving rise to the formation of a $1.80 support level.

Will Lido fall back to the lows of 2023?

The latest candle attempted to gain bullish momentum but was shot down due to bearish pressure over the market. The rejection from the $1.96 level pushed the price near the recent support of the $1.80 level. There is a fair chance of bears breaking the $1.80 level support which would lead to a downfall in price and a higher probability for the price that it might fill the bottom wick of the 7 May candle, generating a loss of approximately 12.23%.

Lido’s price is still trading below the 20,50,100 and 200-day EMA showing high bearish pressure in the market. For the price to shift from a bearish to a bullish trend, the LDO price needs to push above $2 and cross above the $2.24 level to target the highs of a $2.64 level. The year-to-date returns remain green, while monthly and weekly gains have shifted to red. On May 5, a popular on-chain analytics firm stated that $135 Million worth of Lido tokens were transferred from one self-custody wallet to another.

Buyers Eying Lido Token?

The RSI trades at 33.47 and might enter the oversold zone if the price breaks below the $1.80 level. The next immediate support for price resides at the $1.48 previously held price. Chaikin money flow score is 0.02, indicating almost no signs of weakness or strength in Lido Market. The longs/shorts ratio is 1.01, with 50.33% longs and 49.67% shorts in the last 24 hours, indicating that the bulls are trying to protect the $1.80 level.

Conclusion:

The market structure and price action for Lido Dao are bearish, and the price needs to break above the $2 level to stabilise the market. The technical parameters are showing bearish sentiment, but buyers’ participation increases to protect the $1.80 level.

Technical levels:

Major support: $0.95 and $1.48.

Major resistance: $2 and $2.64.

Disclaimer

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