Lido bulls unable to breach the $2.55 mark – what now?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

• Lido token maintained its robust uptrend on the upper timeframe charts.
• The $2.2 and $2.55 ranges have been crucial previously two weeks, and bears have refused to yield $2.55-$2.7 to this point.

Lido Finance [LDO] token has hovered beneath a key resistance degree since mid-November. A whale transferred 500k tokens to Binance just lately, sparking worries of a spike in promoting strain.

Lido additionally gained from the rising recognition of Blast, an upcoming layer 2 blockchain. The inflow of ETH deposits may elevate Lido’s stake management over Ethereum.

With the technical evaluation additionally pointing towards bullishness, ought to buyers look to purchase LDO in anticipation of one other rally?

The $2.2 assist has been resolutely defended previously three weeks

Supply: LDO/USDT on TradingView

The three-day chart confirmed an unceasing march northward for LDO since mid-October. The $2.55 resistance zone was not but breached and has been a key degree for the bears since April. The latest rejection took Lido costs again towards $2.2.

Nonetheless, the market construction remained bullish and the RSI confirmed robust upward momentum on the upper timeframe chart. The On-Stability Quantity (OBV) climbed increased in November to indicate

The Fibonacci retracement and extension ranges (pale yellow) highlighted that $1.91 and $1.71 could possibly be vital assist ranges ought to $2.2 fail within the coming weeks. Alternatively, a transfer previous the native highs at $2.65 would possible see a rally to $3.4 unfold.

The declining lively addresses may trigger fear amongst buyers

Supply: Santiment

The MVRV ratio of LDO reached a excessive on 22 November not seen since March. This was adopted by a wave of profit-taking from holders which noticed LDO costs slide to the $2.2 space.

On the time of writing, the MVRV ratio was nonetheless excessive and will tempt extra holders to e book earnings.

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The imply coin age has trended increased since early November, exhibiting network-wide accumulation. On the similar time, the age-consumed metric remained quiet.

This confirmed a surge within the motion of dormant tokens that has not been seen to this point. A big spike can be an early signal that holders may start to promote their LDO holdings which might result in a drop in costs.