Lido [LDO] hit a key stiff resistance level, can shorting yield gains

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion

• The RSI headed to the overbought zone, making LDO bullish and ripe for reversal.
• Vital whale exercise may tip the size for bulls. 

Lido [LDO] registered a powerful every day and weekly efficiency. Up to now 24 hours, it appreciated 15% and traded at $2.7 on the time of writing. On the weekly entrance, LDO rallied 14%, based on CoinMarketCap.

Nonetheless, at press time, the worth motion hit a key stiff resistance degree at $2.8, which may decelerate the uptrend or inflict a reversal ought to extra sellers lock features on the degree. 

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Will the $2.8 impediment entice sellers?

Since mid-January, LDO has been fluctuating within the  $2 – $3.2 vary. Towards the tip of March, LDO retested the $2 and noticed elevated demand at this degree.

A pullback retest noticed it clear the $2.229 and $2.5 obstacles. The robust rally is also attributed to a bullish Bitcoin [BTC], which made new highs prior to now few days. 

At press time, BTC was constricted to $26.9K – $28.8K, which may delay LDO from overcoming the $2.8 barrier convincingly. As such, sellers may acquire market entry and sink the worth.

The instant short-selling targets can be $2.5, $2.3, and $2.2. An intensive downward stress may set LDO to retest the earlier assist of $2. 

However, bulls may acquire extra leverage if there’s a convincing session shut above the $2.8 degree. Such an upswing, particularly if BTC breaks above its vary, may set LDO to retest the overhead resistance degree at $3.26. 

On the time of writing, the RSI (Relative Power Index) was above 50, indicating a bullish LDO. However the RSI was inching nearer to the overbought zone, which may make it ripe for a value reversal. Equally, the OBV (On Stability Quantity) confirmed an uptick, indicating elevated demand for LDO prior to now two days. 

LDO noticed vital whale exercise

Supply: Santiment

There was vital whale exercise transacting above $1 million price of LDO on 4 April. Elevated upward stress on LDO’s value adopted, alongside a subsequent breach of the $2.5 resistance.

Equally, the imply coin age and provide outdoors exchanges elevated prior to now few days, reinforcing the extraordinary accumulation part. 

Learn Lido [LDO] Worth Prediction 2023-24

At press time, there was one other whale exercise recorded. A have a look at on-chain metrics revealed the promoting stress was coming from the 100K – 1M LDO holders’ class as the remainder of the whales gathered. 

Supply: Santiment

In conclusion, the stiff resistance at $2.8 may gradual the uptrend, however vital whale exercise may enhance the surge if BTC reclaims the $29K. As such, traders ought to observe BTC value motion carefully.