๐งช LDO coin at $0.936 โ signs of reversal and a shift in direction!
๐ฏ Candle analysis:
After reaching a local bottom at $0.861, the currency started forming higher bottoms and consecutive green candles โ indicating a potential beginning of a reversal in the downtrend.
The recent candles were medium-sized, with a clear body and short shadows โ indicating that buyers have started to enter with confidence instead of confusion or hesitation.
There is a slight increase in trading volume with the rising candles, which is an important factor supporting the idea of genuine interest from buyers.
๐ฃ Moving averages:
The price managed to close above the 25-period moving average (around $0.925) for the first time since the beginning of this decline โ a positive signal that could be the start of a reversal.
The 99-period average is still higher at $1.064, and it could be the next target if the upward momentum continues.
๐ Technical levels:
Nearby resistance: between $0.953 and $0.96 โ breaking it may open the way towards $1.00 and beyond.
Support area: between $0.90 and $0.92 โ the area that witnessed the last bounce.
Clear trading volume block: between $0.94 and $0.95 โ a testing area for market control between buyers and sellers.
๐ Market psychology:
The recent candles show rejection of lower prices and the beginning of buyer dominance.
There is a gradual shift from supply dominance to demand dominance, which is evident through the rising bottoms and higher closes.
The current movement resembles a "round bottom" pattern in its early stages โ which is often preceded by a surge towards strong resistance.
๐ Educational trading idea (not a recommendation):
Entry zone: between $0.93 and $0.94
Stop loss: below $0.905
Targets:
Target 1: $0.96
Target 2: $1.00
Target 3: $1.05 โ $1.07 (near the 99 average)
Risk-to-reward ratio: between 1:2.5 and 1:3 depending on the entry point
