As of June 21, 2024, Lido has experienced an increase of 20.57% in the last seven days. However, the possibility of continued upward movement seems limited. The main factor is its proximity to the historical resistance level at $2.30 on the daily time frame. This resistance level has historically been a significant barrier, and without a decisive breakout above $2.30 and then $2.40, sustained upside momentum remains doubtful. 📉
Technical Indicators:
- Resistance and Support Levels: Current resistance: $2.30, Additional resistance: $2.40, Support level: $2.00
- RSI: The current RSI is approaching the historical resistance level of 60. This indicates that the price has entered the overbought zone and could limit further gains.
- Fibonacci Retracement: If Lido fails to surpass $2.30 and $2.40, it is likely to fall to the Fibonacci retracement levels between $1.997 and $2.016 (gold pocket).
- NVT Signal: A key indicator to evaluate Lido's valuation. An NVT signal above 55 indicates overvaluation, while a signal below 25 indicates undervaluation. As of June 21, 2024, Lido’s NVT has increased from 35 a week ago to 44, indicating a fair assessment at the moment.
Strategy:
- Short Position: Considering the strong resistance at $2.30, consider taking a short position on Lido at current levels.
- Re-Entry Point: Consider re-entry around the $2.00 support level if it holds this line.
- Monitoring BTC and ETH: Closely monitor general market trends, especially Bitcoin and Ethereum, as their movements will likely affect the price of Lido.