- Lido Dao price flips 180 degrees as the US trading session takes over from the European one on Friday.
- LDO sees bulls pushing for a recovery as bargain hunters buy in at the monthly S1 support level.
- Expect to see a recovery as far as $2.50 as a double cap on the topside will trigger a dead-cat bounce.
Lido Dado (LDO) price action is pushing higher after losing ground during Friday's ASIA-PAC and European trading sessions. Bulls could maintain support at the monthly S1 support level after the sharp decline in the past ten days. With the Relative Strength Index (RSI) now rebounding out of the oversold area, a profitable close could be in the making for this Friday while dark clouds are still present that could bring about a 25% rampaging decline next week.
Lido Dao price might have bulls wrong-footed here
Lido Dao price could be luring investors and medium-term traders into a bull trap as the altcoin is jumping higher at the start of the US trading session on Friday. After breaching the lower barrier in the RSI and trading into the oversold area at the end of the European session, bulls are scooping up the pieces after Silvergate Capital went bankrupt and Silicon Valley Bank was the victim of a bank run. With several dark clouds still hanging over cryptocurrencies, this rally could give the wrong impression as another 25% decline is still the most likely outcome going into next week.
LDO will see a jump higher toward roughly $2.50 and then fall in line with that blue ascending trend line and the 55-day Simple Moving Average. A firm rejection will be triggered next that sees bears moving in full force. Price action will drop like a stone in LDO and slice through the S1 at $2.20 and stretch to the 200-day SMA near $1.80 with a 25% loss at hand.
LDO/USD 4H-chart
A turnaround and uptrend for LDO would be confirmed once Lido Dao bulls surge through the blue ascending trend line. That means that $2.60 needs to appear in the coming days and at least have a candle close and the next open above that same trend line. The RSI could get overheated quickly, but $2.80 still looks like a good fair value level to enter in case of this turnaround.
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