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Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
- LDO shed over 20% worth since mid-July, providing shorting good points.
- Futures market shopping for volumes muted as weak BTC endured.
Lido’s [LDO] prolonged drop from mid-July provided sellers an edge. Brief-sellers loved over 20% good points as LDO fell from $2.5 to $1.9. Over the identical interval, Bitcoin [BTC] misplaced maintain of $30k and dropped under the range-low of $29.5k. The weakening BTC emboldened short-sellers to hunt extra floor.
Is your portfolio inexperienced? Take a look at the LDO Revenue Calculator
Can late sellers bag good points?
Supply: LDO/USDT on TradingView
Weak BTC worth motion under $29.5k might provide promoting alternatives for late sellers. On the time of writing, BTC confronted one other worth rejection on the range-low of $29.5k however might bounce again from $29.0k.
Again to Lido, the H4’s market construction and momentum have been bearish, as denoted by decrease lows since mid-July. With the weak BTC, LDO’s worth motion might stall on the $1.974 resistance degree.
In that case, the late sellers might search re-entry on the $1.97 resistance degree. Conservative sellers might goal the mid-July degree of $1.87, however aggressive sellers might purpose for the earlier June range-low of $1.82. Each situations might provide a modest RR (Danger Reward ratio).
Prior to now few days, the RSI (Relative Power Index) and the CMF (Chaikin Cash Stream) have stayed under the essential threshold of fifty and 0 marks, respectively. It confirmed shopping for stress and capital inflows weakened, reinforcing sellers’ leverage.
Shopping for volumes dipped; OI improved
Supply: Coinalyze
How a lot are 1,10,100 LDOs price as we speak?
The sellers’ conviction, illustrated above, was additional confirmed by Coinalyze’s 1-hour chart. Notably, CVD (Cumulative Quantity Delta) registered a constant decline from 26 July, indicating sellers managed the market.
Though the Open Curiosity (OI) fee declined over the identical interval, it made a U-turn from 28 July. Nevertheless, bulls will be hopeful with the improved OI if the BTC fronts a robust reclaim of the $29.5k range-low.
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