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- Lido’s additional upside past $1.7 has been blocked since mid-August.
- Open Rates of interest have been on a gradual decline in Q3 2023.
Bulls haven’t held absolute market management since mid-August’s huge drop. For Lido [LDO], sellers have reigned as early as mid-July, which means shorting the asset yielded spectacular good points. In keeping with TradingView, LDO was down 25% in Q3 as of press time degree of $1.53.
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Can sellers profit once more?
Supply: LDO/USDT on TradingView
Lido’s 12-hour chart was bearish as of press time. LDO made decrease lows and decrease highs since mid-July, cementing a better timeframe bearish bias. It means shorting could possibly be extra worthwhile than going lengthy on the altcoin.
The additional worth dump in August left a bearish order block (OB) of $1.67 – $1.74 (pink). The bearish OB has been a sticky resistance within the final two weeks, presenting Lido sellers with shorting alternatives.
The dynamic 50-EMA (Exponential Shifting Common) lately stretched into the above bearish OB, additional cementing a vital roadblock within the subsequent few days. So, one other worth rejection on the degree might supply additional shorting good points with an entry at $1.65, take-profit at $1.54, and exit at $1.7.
Nonetheless, a transfer past $1.7 and a subsequent shut above the bearish OB will invalidate the brief concept. Such a transfer will flip the upper timeframe construction to bullish, giving bulls just a little leverage.
In the meantime, the RSI was detrimental as CMF went southwards, demonstrating promoting strain loomed massive and capital inflows dropped.
Open Rates of interest declined in Q3
Supply: Coinglass
In keeping with Coinglass, Lido’s Open Rates of interest have dropped from >$70 million in July to beneath $40 million at publication. The decline underscores a gradual drop in demand for Lido within the derivatives phase – a long-term bearish bias.
How a lot are 1,10,100 LDOs value immediately?
Nonetheless, the liquidations data confirmed extra brief positions have been wrecked within the final 12 hours earlier than press time. If the delicate shopping for strain builds, Lido might rise to the hurdle.
So, the sellers can await the transfer as much as $1.7 and observe Bitcoin’s [BTC] motion earlier than shorting the asset.
