For LEO investors $5.2-$5.3 area will be a region of…
Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Bitcoin crashed previous a number of necessary assist ranges prior to now two days, however in the identical time interval, LEO solely noticed a pullback on its uptrend from early June. Was this an indication of energy for LEO?
The value was buying and selling at an necessary demand space at press time. Some respite for Bitcoin from the promoting stress may nicely see LEO soar greater on the value charts within the days to return.
LEO- 12-Hour Chart
Supply: LEO/USDT on TradingView
The Fibonacci retracement ranges (yellow) confirmed that the value was above the 38.2% retracement degree, nevertheless, it noticed giant wicks that noticed LEO momentarily drop to the $5.1 mark. Nonetheless, a buying and selling session shut beneath the $5.26 degree, the earlier greater low, wasn’t seen.
Earlier than the positive factors of late Might and June, LEO had been toiling in a downtrend. Within the final week of Might, the value broke previous a decrease excessive at $5.2 and pushed greater to $5.43, earlier than seeing a deep pullback to $4.9. But, in doing so, the longer-term construction was flipped to bullish.
And, that’s the way it stays. From late Might, the value has set greater lows. Within the days to return, a session shut beneath $5.26 might be ominous for the bulls. Equally, if the value can push previous the $5.58 degree, it might doubtless attain $5.79 earlier than a pullback on its uptrend.
Rationale
Supply: LEO/USDT on TradingView
The symptoms confirmed the asset having bullish momentum. The H12 RSI retested impartial 50 as assist and seemed to be transferring upwards as soon as once more, simply as the value itself finds assist on the beforehand bearish order block.
Therefore, there may be some suggestion that the earlier provide zone has now been flipped to demand, and a transfer upward might be seen. The MACD was additionally nicely above the zero line, though it fashioned a bearish crossover to point a pullback.
The A/D, alternatively, has been on a gradual downtrend and confirmed that the promoting quantity has been heavy. The CMF has additionally been beneath -0.05 within the month of Might, to indicate important promoting stress. Nonetheless, the CMF managed to climb again above +0.05, whereas the A/D moved sideways on the charts.
Conclusion
The symptoms weren’t in agreement- though momentum was with the bulls, there was not regular nor important shopping for stress to maintain a rally upward. The $5.2-$5.3 space stays a area of demand. Regardless of the shortage of demand, LEO may push greater as soon as extra.
