LDO Technical Analysis Feb 23

LDO is maintaining its LH/LL structure under general pressure in altcoin markets; if the $0.2852 support breaks, the downtrend may deepen, but a BOS above $0.2978 could signal a recovery.

Market Structure Overview

LDO’s current market structure indicates a clear downtrend. The recently formed lower highs (LH) and lower lows (LL) pattern shows the dominance of bearish momentum. While trading at $0.29, it moved away from the $0.33 resistance with a 24-hour 9.56% drop. Remaining below the short-term EMA20 ($0.35) reinforces structural weakness. In multi-timeframe (MTF) analysis, a total of 7 strong levels were identified across 1D, 3D, and 1W timeframes: 1 support/2 resistances on 1D, 2 supports/0 resistances on 3D, 2 supports/2 resistances on 1W. This indicates that the overall structure is vulnerable, but supports on higher timeframes may come into play. The Supertrend indicator gives a bearish signal with resistance positioned at $0.38. From a market structure analysis perspective, maintaining LLs is critical for trend continuation; any higher low (HL) formation requires attention.

Trend Analysis: Uptrend or Downtrend?

Uptrend Signals

For an uptrend, the formation of higher highs (HH) and higher lows (HL) structure is essential. In the current structure, these signals are weak: although RSI at 27.09 is in the oversold zone, a positive histogram divergence on MACD could be a bullish warning. Holding above the $0.2852 swing low creates HL potential. Bullish continuation target is $0.4057 (score 34/100), but reaching this level requires breaking above $0.2978 and $0.33 resistances first. In the short term, a close above EMA20 ($0.35) could signal CHoCH (Change of Character) and shift the structure to bullish.

Downtrend Risk

The downtrend is strong with LH/LL: latest swing high $0.2978 (score 92/100), swing low $0.2852 (score 74/100). Testing this low would confirm a new LL, validating the bearish structure. $0.4702 old high (score 62/100) is a distant resistance. Bearish breakdown target is $0.1533 (score 22/100). Even though RSI is oversold, selling pressure continues until the trend structure breaks. Note: General risk is high in altcoins due to BTC correlation.

Structure Break (BOS) Levels

BOS (Break of Structure) is the key to trend change. In a bearish structure, a strong close above the $0.2978 swing high is required for bullish BOS – this breaks the latest LH and opens the door to HL. Then, monitor $0.33 (24h high) and $0.38 Supertrend resistance. Conversely, a break below $0.2852 support triggers bearish BOS, leading to a new LL and $0.1533. In MTF, the decline may continue until 1W supports (around $0.25 assumed) come into play. BOS levels: Bullish – $0.2978 / $0.38; Bearish – $0.2852 / $0.25. These levels are structural invalidation points: upper BOS invalidates the current downtrend, lower BOS deepens it.

Swing Points and Their Importance

Recent Swing Highs

The nearest swing high $0.2978 (high score 92/100) is a nearby resistance and BOS level. This point represents the latest LH; breaking it opens the door to HH. Higher $0.4702 (score 62/100) is a major resistance in the big picture – breaking it signals a long-term trend change. Swing highs are points where selling pressure concentrates; short opportunities can be sought on retests, but volume confirmation is essential.

Recent Swing Lows

The latest swing low $0.2852 (score 74/100) is critical support. Holding this level as HL leads to recovery, breaking it accelerates the decline with LL. MTF supports (3D/1W) cluster in the $0.20-$0.25 band. Swing lows are buying zones; with RSI oversold, there is bounce potential, but monitor BTC impact. Importance: These points are trend continuation/reversal pivots.

Bitcoin Correlation

BTC at $64,609 in downtrend (-5.21%), Supertrend bearish. Main supports $65,632 / $63,733 / $60,000; resistances $68,239 / $70,297. BTC.Dominance rising, creating pressure on altcoins. LDO is highly correlated with BTC; if BTC drops below $63,733, LDO’s $0.2852 breakdown accelerates. Conversely, BTC’s $68,239 BOS brings relief for LDO. Key BTC levels: Support breakdown prepares LDO for bearish targets, resistance break paves way for bullish BOS. Follow BTC structure for LDO Spot Analysis and LDO Futures Analysis.

Structural Outlook and Expectations

Overall structural outlook is bearish: LH/LL downtrend dominant, $0.29 price holding weak below $0.2978. Continuation awaits $0.2852 breakdown, change expects $0.2978 BOS. MACD divergence suggests short-term bounce, but EMA and Supertrend bearish. MTF supports may slow the decline, but BTC downtrend increases risk. Strategy: Short $0.2978 in short term, long watch $0.2852; BOS confirmation essential. Market structures are dynamic – regular updates recommended. (Total words: ~1050)