- Lido Dao has received a firm rejection and sees bears roaring back.
- LDO in the ropes after a very strong US job report lashes out at the goldilocks' hopes.
- Seeing the upward revisions from the previous numbers, the Fed is proven to be right and hopes for a rate cut this year are fading.
Lido Dao (LDO) traders received a very cold shower after the US jobs report on Friday. Although already on Thursday, LDO received a firm rejection after spiking higher, bears seem to be taking over the steering wheel as the Relative Strength Index points to more downside. The risk is that a Federal Reserve (Fed) rate cut for later this year gets priced out, which would mean bad news for risk assets like cryptocurrencies, with a drop towards $1.7 in the projections for LDO.
Lido Dao price sees bulls scared of things to come
Lido Dao can say goodbye to its upside price target of $3 for now as cold water has been poured on this rally after the US jobs report threw a spanner in the works. With a very upbeat number overstepping the biggest number in the economic survey, together with firm upward revision on all fronts, the Fed seems to be this time undershooting the situation. With tiring wages and more people employed at higher wages, this inflation spiral is not ending anytime soon.
LDO gets a gut punch to move to the downside and will see more downside as the hopes for a rate cut later this year are seeing very few changes. This repricing of that trade idea comes with a selloff in equities and cryptocurrencies. With only the monthly pivot at $2, the road is open for a 27% drop towards $1.7 to get caught by both the 55-day and the 200-day Simple Moving Average.
LDO/USD daily chart
Markets could be seen brushing off this strong number starting next week as the dust settles over the weekend on all the central banks and the US jobs number. Expect a hesitant start with support at $2 ready to provide a trigger for a bounce higher. On the upside, $3 might be farfetched, but $2.8 should be up for a test.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.