Lido [LDO] Eyes Bullish Gains as It Approaches Supply Zone
• Lido [LDO] posted an impressive 12% weekly return by the time of writing.
• The price action is headed to a bearish zone and price ceiling it encountered in mid-May, and could face another price rejection if the trend repeats.
• With supply on exchanges dipping and increased outside exchanges, buying pressure has improved with daily active addresses increasing as well.
Lido [LDO] Bullish Momentum
Lido [LDO] posted an impressive 12% weekly return by the time of writing. However, this bullish momentum could ease as it approaches a key supply zone alongside a weak BTC.
The $2.50 – $2.77 supply zone (red) has been a critical price ceiling since late March, inflicting three price rejections since then. If the trend repeats, LDO could face another price rejection at this supply zone. In this case, the drop could be eased at the range low of $2.2 or the demand zone of $1.89 – $2.06 (cyan).
Despite recent fluctuations, LDO’s market structure on the four-hour chart was still on an uptrend momentum as indicated by its ascending channel (orange). The Relative Strength Index (RSI) headed to the 50-mark while On-Balance Volume (OBV) fluctuated since mid-May indicating ease in buying pressure and wavering demand respectively.
Supply & Demand
From 4 June onwards, supply on exchanges witnessed a dip – a decline in selling pressure while outside exchanges increased – signifying short-term accumulation for LDO. This was met by an uptick in daily active addresses which showcased improved volume and buying pressure for LDO overall despite BTC’s weak performance in recent times.
Overall, despite its recent bullish momentum, LDO may soon encounter another bearish rejection due to its current position near its critical supply zone alongside BTC’s weak performance recently which could complicate matters for bulls further and lead to lower support levels being reached if trends repeat themselves once more