As we navigate the dynamic landscape of cryptocurrency, Lido (LDO) has recently been caught in the crosshairs of a bearish sentiment, leading to a price rejection and a persisting sideways structure. The question on everyone’s mind is: Will this trend continue, or can we expect a reversal in the near future?
Bearish Sentiment Looms Over Lido
Over the past few weeks, Lido has been stuck in a trading range of $1.80 to $1.950. The cryptocurrency attempted to break past the range-high of $1.950 but was met with resistance, leading to a price rejection. This has prompted short-sellers to target the mid-range level of $1.88. At the time of writing, sellers have managed to breach this level, but Lido has yet to register any further downside.
The Relative Strength Index and Chaikin Money Flow, indicators that provide insight into market sentiment and money flow, have recorded negative readings. This suggests a bearish sentiment has taken hold following the July CPI data announcement.
Future Prospects for Lido
If this bearish sentiment continues, there’s a possibility that Lido could drop to the range-low of $1.80 or face further rejection at the mid-range before heading lower. However, there’s also a chance for a bullish turn. If a candlestick session closes above the mid-range on the higher timeframe charts (12/1D/1W), this could indicate a shift towards bullish intent. Coupled with positive readings from the RSI and CMF, a retest of the range-high could be feasible.
The Role of the Market
According to Coinglass, a crypto derivative data platform, the Exchange’s Long/Short Ratio in the 4-hour timeframe has shown a bearish inclination. This implies that more market participants on the derivative side are shorting the asset, further adding to the bearish sentiment. Coinalyze, another crypto derivative data tracking platform, has reported that Lido’s long positions have faced over 20k of liquidations compared to less than 1k of short positions in the last 24 hours.
This data suggests a short-term bearish sentiment across futures markets. If this inclination persists, Lido may continue to slide towards the range-low in the coming days.
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