Lido falters at $2 – Bulls can seek re-entry here

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• LDO chalking a range formation below $2. 
• Buying volumes and Open Interest rates declined. 

Lido’s [LDO] ongoing short-term range formation could persist if Bitcoin [BTC] fluctuations above $30k continue. LDO has been oscillating between $2.0 – $1.8 since 21 June. So far, the range-high of $2 has inflicted three price rejections, setting LDO to retest lower short-term support. 

Read Lido [LDO] Price Prediction 2023-24 

Meanwhile, BTC cooled off from its last week rally, easing to $30.3k at the time of writing, down from the recent peak of $31.4k. The king coin’s move has set most altcoins into pullbacks. 

A likely retest of $1.8?

Source: LDO/USDT on TradingView

The current short-term support zone of $1.77 – $1.82 (blue) was a key resistance zone during 10 – 20 June. However, LDO mounted above the zone, flipping it to support after BTC’s sharp rally to $31k last week. 

But LDO’s rally has been curtailed at the $2 price – another support level in mid-May now turned into a roadblock. So far, LDO has faced three price rejections at the roadblock, leading to retracement. At the time of writing, price action hit the same obstacle and could drop LDO to $1.77 – $1.82. 

A rebound from the $1.77 – $1.82 support zone could offer new buying opportunities, targeting the $2 hurdle. Besides, secondary buy signals could exist upon a breakout above $2 and rest on the same level. Such a move could target $2.24. 

A drop below $1.77 – $1.82 support will invalidate the bullish thesis, especially if BTC drops below $30k. 

Meanwhile, the Chaikin Money Flow (CMF) was above the zero mark, indicating positive capital inflows. However, the Relative Strength Index (RSI) moved lazily along the median mark, thus easing buying pressure.

Buying volumes and Open Interest rates eased

Source: Coinalyze

On the 1-hour chart, the Cumulative Volume Delta (CVD) has been making lower highs, showing buying volumes declined. 

How much are 1,10,100 LDOs worth today?

Similarly, the Open Interest (OI) rates, which track the amount of opened futures contracts, dropped significantly from about $49 million on 22 June to below $44 million at the time of writing. Collectively, these metrics suggested a building bearish sentiment in the futures market. 

Buyers can wait for a retest of the support zone and confirmed rebound for long opportunities.