Gk_Aronno
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LDO: Watching for Breakout in DeFi Leader’s Range
$LDO
In this analysis, I’m going to review the LDO coin — one of the well-known DeFi projects within the Ethereum ecosystem with a significantly high TVL.
✔️ This project’s token currently has a market cap of $748 million, placing it at rank 86 on CoinMarketCap.
⏳ 4-Hour Timeframe
As you can see on the 4-hour chart, after a downtrend, LDO formed a bottom around the 0.676 zone and managed to rally up to 0.868.
🔍 Currently, the price is consolidating below that resistance in a ranging box. A breakout from either direction of the box could determine the next trend.
⭐ If the box breaks upward and the 0.868 level is breached, we can consider the prior downtrend over, and the price would be forming a new bullish structure. However, there is another resistance at 0.904 right above, and there’s a possibility of rejection from that level after the 0.868 breakout.
📈 For a long position, I personally plan to enter upon the breakout of 0.868. While it’s possible that the price might reverse from 0.904, I prefer having an earlier entry and using a more accessible trigger.
🔽 On the other hand, if the box breaks to the downside, the price might revisit the 0.676 support and potentially start a new bearish leg in line with the longer-term downtrend.
📉 The first short trigger is the break of 0.818 (the lower boundary of the box), but there’s another minor support at 0.795, which may cause a bounce.
👀 I personally prefer to wait for the 0.795 level to break for a short entry, given that market momentum is currently bullish, and I prefer a more reliable trigger for shorts.
📊 Volume within this range has been decreasing, which is normal in such consolidation phases. The longer the price stays in this range, the lower the volume tends to be — and typically, a breakout will lead to a sharper move.
The RSI oscillator also has a support zone at 43.17. If this level is broken, it could signal incoming bearish momentum and increase the probability of a downside breakout.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
In this analysis, I’m going to review the LDO coin — one of the well-known DeFi projects within the Ethereum ecosystem with a significantly high TVL.
✔️ This project’s token currently has a market cap of $748 million, placing it at rank 86 on CoinMarketCap.
⏳ 4-Hour Timeframe
As you can see on the 4-hour chart, after a downtrend, LDO formed a bottom around the 0.676 zone and managed to rally up to 0.868.
🔍 Currently, the price is consolidating below that resistance in a ranging box. A breakout from either direction of the box could determine the next trend.
⭐ If the box breaks upward and the 0.868 level is breached, we can consider the prior downtrend over, and the price would be forming a new bullish structure. However, there is another resistance at 0.904 right above, and there’s a possibility of rejection from that level after the 0.868 breakout.
📈 For a long position, I personally plan to enter upon the breakout of 0.868. While it’s possible that the price might reverse from 0.904, I prefer having an earlier entry and using a more accessible trigger.
🔽 On the other hand, if the box breaks to the downside, the price might revisit the 0.676 support and potentially start a new bearish leg in line with the longer-term downtrend.
📉 The first short trigger is the break of 0.818 (the lower boundary of the box), but there’s another minor support at 0.795, which may cause a bounce.
👀 I personally prefer to wait for the 0.795 level to break for a short entry, given that market momentum is currently bullish, and I prefer a more reliable trigger for shorts.
📊 Volume within this range has been decreasing, which is normal in such consolidation phases. The longer the price stays in this range, the lower the volume tends to be — and typically, a breakout will lead to a sharper move.
The RSI oscillator also has a support zone at 43.17. If this level is broken, it could signal incoming bearish momentum and increase the probability of a downside breakout.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.