The price of LIDO DAO has been going up for some days, seeing around a 30% increase since February 10. However, this spike could be short-lived, as a crucial indicator that signaled the last bottom now signals a sell.
Around February 9-10, Ali’s analysis captured a bottom formation in LDO price. The TD Sequential indicator displayed a “9” buy signal at this crucial juncture, suggesting the downward pressure had reached its limit. This prediction proved accurate as LDO began an impressive upward trajectory, marking the beginning of a substantial rally.
The latest analysis from Ali reveals an important development on the 12-hour chart. The TD Sequential indicator, which previously caught the bottom with precision, is now flashing a sell signal. This technical pattern suggests the current upward momentum might be approaching exhaustion, potentially leading to a price correction.
Technical Implications and Market Outlook
The most recent candlestick formation shows increasing selling pressure, evidenced by a pronounced upper wick. According to Ali’s analysis, this technical setup, combined with the TD Sequential sell signal, suggests traders should exercise caution. The market has demonstrated a series of higher highs and higher lows during the uptrend, but this pattern might face a challenge in the near term.
While the overall trend remains bullish, Ali’s analysis suggests a potential slowdown or correction might be imminent. The TD Sequential indicator’s historical accuracy, particularly evident in its recent bottom call, adds weight to this current sell signal. However, it’s worth noting that strong bullish momentum could still push prices higher through a TD Sequential countdown phase before any significant pullback occurs.
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The market appears to be at a crucial juncture, with Ali’s technical analysis providing valuable insights for traders navigating these waters. As always, additional confirmation signals should be monitored before making any definitive trading decisions.
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