What bear current market? This token is quietly making new highs, up 300% in opposition to Bitcoin in 2022

What bear current market? This token is quietly making new highs, up 300% in opposition to Bitcoin in 2022
Comments Off on What bear current market? This token is quietly making new highs, up 300% in opposition to Bitcoin in 2022, 03/07/2022, by , in Cryptocurrency

Unus Sed Leo (LEO) has not only survived the crypto market place massacre in the to start with half of 2022 but has in fact posted main gains, bucking the huge crypto crash.

LEO beats crypto kingpin Bitcoin

LEO, a utility token used throughout the iFinex ecosystem, completed the first 50 percent of 2022 from Bitcoin at 32,793 satoshis, up just about 300%.

The token also rallied 55% from the U.S. greenback in the identical period, hitting $5.80 for the initial time considering that February 2022. In contrast, Bitcoin (BTC) and Ether (ETH), the leading two crypto belongings by marketplace cap, fell by about 60% and 70%, respectively.

Prime-ranking crypto property and their performances for each timeframes. Source: Messari

That has built it the most effective-executing crypto asset in the major ranks so significantly into 2022.

What’s driving LEO selling price larger?

The crypto market wiped more than $2 trillion off its valuation in the initially 50 percent of 2022, led by rate hikes, the collapse of Terra (LUNA) — now formally Terra Traditional (LUNC), and systemic insolvency troubles across main cryptocurrency lending platforms and hedge funds.

LEO/BTC everyday price tag chart. Resource: TradingView

LEO’s value also endured a 25% decline right after hitting its all-time large of $8.14 in February 2022. Nevertheless, it fared superior than the rest of the crypto industry, which fell just about 60% in the exact period.

The explanation driving this outlier token could be its starkly different characteristics in contrast to other digital property.

IFinex, the mother or father organization of Bitfinex, released LEO in 2018 in a private sale spherical to elevate $1 billion. In return, the agency dedicated to employing 27% of its revenues from the prior thirty day period to purchase back LEO until eventually all tokens are eradicated from circulation.

Also, iFinex pledged to buy again LEO tokens utilizing funds it had lost in the course of the August 2016 Bitfinex hack.

In February 2022, the U.S. Office of Justice recovered 94,000 BTC out of 119,754 BTC. That coincided with LEO rallying to its document highs in both equally Bitcoin and the greenback-primarily based markets.

Overheated rally?

LEO’s operate-up from Bitcoin hazards exhaustion due to its price’s growing divergence with momentum.

In element, LEO’s selling price has been generating larger lows whilst its each day relative energy index (RSI) prints decreased highs. As a rule of technological examination, this divergence demonstrates a absence of upside conviction between traders.

LEO/BTC everyday value chart. Resource: TradingView

The RSI is also earlier mentioned 70, a customarily “overbought” place and a market indicator. 

LEO now maintains its bullish bias though keeping earlier mentioned its interim assistance stage at 26,220 sats, coinciding with the .236 Fib line of the Fibonacci retracement graph drawn from 4,382-swing minimal to 32,965-swing superior. 

A decisive close underneath 26,220 sats could have LEO eye a run-down toward the 38.2 Fib line around 22,046 sats, down 25% from Jul’s price tag.

Interestingly, the amount is around yet another help degree — the 50-working day exponential shifting typical (50-day EMA the pink wave in the chart earlier mentioned).

LEO/USD bearish rejection

LEO’s ongoing rate operate-up had it briefly close previously mentioned a essential resistance amount at all over $6.24, as revealed in the chart underneath.

LEO/USD every day selling price chart. Resource: TradingView

The degree was instrumental in capping the token’s upside attempts between February and April earlier this calendar year. It again prompted traders to safe gains on July 1, leaving LEO with a big upside wick and hence hinting at bearish rejection.

LEO’s latest price trends are total of bearish rejection candles, including its 57% intraday value rally on Feb. 8 that preceded a 28.5% correction by the end of that quarter.

Conversely, the token’s bullish rejection candle on June 18 resulted in a 50% price recovery, as mentioned earlier mentioned.

Connected: On the brink of recession: Can Bitcoin endure its initially international economic disaster?

If the specified fractal plays out, then LEO will possibility a price tag reversal to its interim support amount of $5.52, which, coincides with the token’s 50-working day exponential going normal (50-working day EMA the red wave). That would signify a modest 9%-10% decline from July 1’s cost.

But if the help fails to maintain, as it had in late April, LEO cost then dangers testing its 200-working day EMA (the blue wave) around $5, a 17% decrease general.

The sights and views expressed here are solely these of the creator and do not always reflect the views of Cointelegraph.com. Each individual expenditure and buying and selling move includes risk, you should really conduct your possess research when producing a selection.

About Vikram Rout

Vikram Rout has been a blogger, digital marketer and an SEO expert at Pixxelznet.com, one of the fastest growing custom design crowdsourcing platforms. Over the years, he has been helping small businesses and startups improve website design and SEO strategy, content marketing and user experience. You can engage with him on here.