Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Lido’s price was limited to the lower price range.
- At the time of writing, there is a bearish bias in the spot and futures markets.
After losing the price level of $2, Lidos [LDO] attempts to reclaim the psychological are capped at $1.95. Since the end of July, the altcoin has faced several price rejections from $1.95 but entered a narrow price range between $1.95 – $1.80. The heightened market uncertainty limited price action on the lower range; short sellers can consider this level for potential profits.
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Lido turned the midrange into a resistance
Source: LDO/USDT on TradingView
Over the past few days, the $1.88 mid-range has turned into a roadblock, forcing a pullback to the low range ($1.8) when prices have taken a turn for the worse.
The price chart indicators showed weak readings at the time of writing. For example, the value of the Relative Strength Index was 46 and has remained below 50 for the past seven days. It shows the weak buying pressure in the same period.
The Chaikin Money Flow (CMF) dipped below zero and struggled to recover it. It illustrates muted capital inflows and an overall bearish bias. With a weak Bitcoin [BTC]can LDO again be rejected in the mid-range ($1.88).
If so, shorting the mid-range altcoin, with a take profit target in the lower range ($1.8), could yield modest gains.
An H4 candlestick session closing above $1.90 will void the short set up. Such a move could lead LDO to retest the range high of $1.95.
Bearish prejudices prevailed
Source: cryptometer
According to LDO’s live market data from CryptoMeter, the spot market was generally bearish, with dominant sales volume exceeding 52%. It shows that more traders shorted the asset.
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The same sentiment prevailed in the futures market. According to Mint glass, LDO open interest rates fell 3%, from $63 million on Aug. 2 to about $53 million at the time of writing. It indicates a decrease in demand for LDO in the futures market – a downward trend.
Thus, the mid-range retest could present a shorting opportunity, especially if BTC’s weakening continues.