LEO crypto slides 25%, nears 2-year low: Rebound possible ONLY IF…

Unus Sed Leo [LEO] has emerged as the largest loser out there over the previous 24 hours. The token, with a market capitalization of $6.26 billion, noticed its worth drop by 25% at press time.

Market sentiment means that the present outlook might additional speed up the decline, with the asset prone to falling effectively beneath ranges established over the previous 730 days.

LEO wipes out positive aspects

LEO has worn out its accrued positive aspects from the previous yr and has now turned unfavourable, posting a notable deficit.

The decline turned extra pronounced over the previous 48 hours, as buyers positioned in opposition to a possible rally and broadly shifted to a bearish stance.

Supply: CoinMarketCap

Group sentiment information reveals that amongst 30,200 buyers, bullish sentiment dropped sharply from 72% on the fifteenth of December to only 14% on the time of writing.

With a big 58% of buyers promoting, the affect has been removed from negligible. This strain has already been mirrored within the spot market, which has seen minimal exercise over time however nonetheless recorded a $47,000 sell-off.

An extra decline might take form if extra buyers flip bearish on the chart.

How deep might the decline go?

Regardless of the latest drop wiping out its complete 2025 positive aspects, market evaluation reveals that LEO’s 2024 positive aspects are actually additionally in danger.

The chart reveals that LEO is just one demand zone away from retesting its 2024 value stage.

This demand zone, highlighted by a blue rectangle, acted as a consolidation space between March and November 2024. After that interval of consolidation, the asset finally broke out.

Supply: TradingView

Sometimes, unfilled orders have a tendency to stay inside such zones, which might act as a possible catalyst if value retraces into this space.

Nonetheless, if promoting momentum intensifies, LEO might lengthen its decline past this stage, inserting 2024 costs as the subsequent part, with a revisit of the 2022 low not dominated out.

Cautious, however not totally bearish

To evaluate the probability of a transfer into the beforehand recognized demand zone, AMBCrypto examined tendencies throughout key technical indicators.

The indications recommend that the market stays cautious fairly than outright bearish, leaving room for a possible rebound.

The Accumulation Distribution (AD) indicator has declined over the previous day, slipping to six.68 million, as of writing, its lowest stage because the sixteenth of June.

Regardless of the dip, the indicator stays in constructive territory, suggesting that the present promoting part seems corrective and that bulls nonetheless preserve total management.

Supply: TradingView

Additional readability comes from the Cash Circulation Index (MFI), which measures whether or not liquidity inflows sign shopping for or whether or not outflows point out promoting strain.

The MFI has dropped into oversold territory, falling beneath the 20 mark. Traditionally, this stage indicators vendor exhaustion and has typically preceded market rebounds.

Whereas the chart doesn’t level to a particular rebound timeline and costs might nonetheless pattern decrease, the indications recommend an elevated probability of a sooner restoration as soon as promoting strain eases.

Last Ideas 

• LEO buyers have begun backing out as a majority flip bearish and place promote strain on the asset.
• Technical constructions present that LEO is one key assist zone away from marking a two-year low, as bearish sentiment continues to construct.