Here we have the Lido token. As you can see, it’s a very interesting token with strong sequence characteristics, which I really like for trading. It wasn’t on my radar before, so thank you for the tip.
So, what do we see here? We have a red structure that reversed at the resistance line and made an overshoot move into our red XY level. At the same time, our red structure can also be subdivided into an orange structure.
What’s notable here is that both the resistance mark, the XY level, and the target levels were perfectly reached, each showing a very strong reaction. Reaching a target level allows us to plot an Overall Correction Level (OCL), which, interestingly, aligns exactly with our red XY level.
As you can see, both levels were approached and slightly overshot, and the resulting move has already started to correct. Interestingly, we’ve already hit our blue reversal level and observed a slight upward movement.
However, keeping the global crypto market and its broader characteristics in mind, I expect we’ll see another slightly lower low within the reversal zone. It remains exciting to see how this plays out, as for our structure to remain active and valid, we need to hit the activation line.
From there, it will be interesting to watch what happens if we invalidate our orange structure. This move is very close to our resistance line, which suggests the potential for a larger correction. How this could align with an XY level for trading remains to be seen.
The targets are set, and I wish you all the best of luck!