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- Lido bulls continued to be suppressed by heavy selling pressure.
- Demand decreased on the derivatives market.
Lidos [LDO] The bearish swing continued downwards, with the price approaching a critical support level. At the time of writing, the LDO was trading at $1.46, just above the $1.4 support level.
How much are 1,10,100 LDOs worth today?
Breaking multiple support levels over the past two months has kept bulls subdued, while increased selling pressure threatened to break a new support level.
Meanwhile, Bitcoin [BTC] hovering above $26,000 and could see LDO extend the price decline in the near term.
Sellers limited the LDO rebound in September
Source: LDO/USDT on Trading View
Continued bearish dominance saw the LDO fall to the $1.4 support level on September 11. Despite the selling pressure, bulls put up a solid defense, with prices recovering 13% between September 12 and September 19.
Still, buyers could not scale the resistance at $1.6. This brought sellers back into the picture, with LDO retesting the support level. Moreover, the indicators on the chart highlighted the intense selling pressure.
The Relative Strength Index (RSI) fell lower towards the oversold zone. In the same pattern, On Balance Volume (OBV) continued to slowly decline. Both reinforced the increased selling pressure and lack of buying pressure in the Lido market.
If the selling trend continues, the $1.4 support could decline, with sellers pushing the price towards $1.2. A subsequent defense of the support level by bulls will negate the bearish thesis and could see a near-term bounce to $1.5.
Realistic or not, here is LDO’s market cap in BTC terms
The market demand for LDO decreased
Source: Coinalyse
Dates of Coinalyse showed that the Open Interest (OI) trended lower along with the price, underscoring the bearish bias.
Similarly, the Cumulative Volume Delta (CVD), which measures market demand for a token, took a nosedive starting September 9. This showed that sellers had more control over the market than buyers.