UNUS SED LEO (LEO) price analysis: Will it continue to outperform Bitcoin?
UNUS SED LEO could rally to $6.50 in the short term
Bitfinex’s utility token UNUS SED LEO has been a huge outperformer in 2022. It has risen more than 50% year-to-date while Bitcoin is down about 57% during the same period. The bulls are attempting to extend the recovery and push LEO above the overhead resistance of $6 as of 7 July 2022.
LEO investors seem to be unscathed by the brutal bear market as 90% of its investors are making a profit at the current levels, according to data from crypto research firm IntoTheBlock.
This outperformance of the LEO token has pushed it into the top 10 list of cryptocurrencies by market capitalisation barring the stablecoins, according to CoinMarketCap data.
Could bulls sustain the higher levels and build upon the up-move? Could LEO go up? Read the LEO price analysis to find out what the charts suggest.
UNUS SED LEO technical analysis: Weekly chart
LEO’s price is attempting to recover from a correction in an uptrend. During strong up-moves, bulls usually buy the dip in the zone between the 38.2% Fibonacci retracement level and the 50% retracement level.
In this case, the buyers arrested the pullback at the 50% retracement level of $4.84. This suggests that the sentiment remains positive and traders are viewing dips as a buying opportunity.
The bulls are attempting to push the price back toward the overhead resistance of $6.13. This level may prove to be a stiff barrier to cross, but if bulls overcome it, the LEO/USD pair could resume the uptrend. The pair could then rally to the target objective at $7.49 and later retest the all-time high at $8.14.
Although the relative strength index (RSI) is in the positive territory, it is showing signs of a negative divergence. This indicates that the bullish momentum may be weakening.
If the price turns down from the overhead resistance, the pair could remain stuck between $6.13 and $4.84 for a few days. The bears will have to sink the price below $4.84 to gain the upper hand.
UNUS SED LEO technical analysis: Daily chart
LEO’s price has broken out of the descending channel pattern and the bulls have held the breakout level for the past few days. However, a minor negative is that the bears have not allowed the bulls to start a strong rally following the break above the channel.
This indicates that the bears are selling the rallies in the zone between $6 and $6.24. If bears pull the price back into the channel, it will suggest that the recent breakout may have been a bull trap. The sellers will then try to pull the price toward the support line of the channel.
Another possibility is that bulls thrust the price above the overhead resistance zone. If they manage to do that, the pair could start a new up-move that could reach the pattern target of $6.60 and then dash toward the crucial resistance at $7.57.
UNUS SED LEO: Buy or sell at current levels?
LEO has been a huge outperformer during the current crypto bear market. Buyers are attempting to drive the price above the overhead resistance at $6.13. If they succeed, UNUS SED LEO’s price analysis suggests a rally to $7.50. This bullish view could invalidate in the short term if the price turns down and breaks below $5.50.
The views and opinions expressed in the article are those of the author, and do not constitute trading advice. Trading and investing involve substantial risks, and you should do your own research or contact your financial adviser before arriving at a decision.