Lido DAO Token | 20 Months Bearish = BullishThis altcoin project has been dropping since January 2023, and that's early January, so we have 20 months confirmed of bearish action. A strong downtrend.
We have several interesting signals.
The market cycles through cycles; it moves from bearish to bullish and from bullish to bearish. If the market never cycles out of a bearish phase, for example, it would kill itself, eventually. So for the market to survive, it has to feed itself by growing. The bullish phase can be sustained indefinitely but this would also have its side effects of which we are not familiar with nor care to speculate about... We are talking about crypto, a young new growing and evolving market.
After almost two years of bearish action, we get a reversal pattern, the rounded bottom. This pattern on its own is not a big deal but we have more signals that support it.
The daily MACD and RSI for LDOBTC bottomed March 2024. After hitting bottom, these oscillators have been producing higher lows (moving higher). Notice easily that LDOBTC has been producing lower lows. This is a five months old double bullish divergence.
Around late May 2024 buy volume starts to appear on this chart. This is interesting, the low is not yet in but buyers are starting to show up. There is interest for this pair. A base starts to form.
Finally, the downtrend lowest point was hit 16-August and yet this day's trading bear-volume is pretty low. Revealing that the downtrend is weak. Now, our initial reversal pattern can be seen in a different light.
Together with the rounded bottom we have a strong bullish divergence with the MACD and RSI; we have bearish volume dropping while bullish volume grows; we have many altcoins in this same category breaking bullish and moving up (marketwide correlation). Now we have a combination of bullish signals so our pattern becomes strong.
This is telling us that a reversal is likely already on its way, if not, it is getting close.
There is additional data on the chart but I wrote the text for your entertainment, and for learning technical analysis as well.
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