LDO/USDT (Long) - Bet on a pre-Merge hype and a successful Merge
The long-awaited Merge upgrade is just around the corner, and we believe that traders will try to bid up the price of Ethereum and any of its scaling solutions (Optimism, Polygon, Lido) right into the Merge. The success of the upgrade is not yet priced in as investors might worry that something goes wrong during the upgrade. Hence, we assume that if everything goes smoothly, tokens linked to Ethereum will receive an additional pump. We have done plenty of research on the Merge, and we believe that developers are properly prepared for the Ethereum transition, and I am willing to bet on its success.
One possible caveat is the overall economy. Just around the start of the upgrade, on the 13th of September, we will receive the CPI data for August. If the number is higher than expected, it could cut the rally short and send cryptocurrencies plummeting. However, if it comes lower than expected, it might add an additional boost to the rally. Despite these potential headwinds, we still believe that the enthusiasm around the Merge will prevail and send the cryptocurrencies higher.
We picked LDO for this bet because of its higher potential returns (that obviously come with higher risk) and its solid technical setup. On the graph, we can see that LDO is forming a head-and-shoulders pattern (H&S) on a daily while the RSI is bottoming, thus pointing to a higher price. One option is to use the neckline (purple line) for the entry. In that case, we would recommend using the entry also as a stop loss. Though it is a safer choice, you might have to reenter the trade several times if you get whipsawed off the trade. The other option is to go long now (as we did) and hope that the H&S completes the pattern. In that case, we would use the red line for the stop loss; that gives you a nice risk/reward ratio of 5.5 if we use the green line as a profit target. However, the profit line certainly doesn't serve as a ceiling, and we expect LDO to go much higher. The sky is the limit if everything goes well with the Merge
Happy Trading!
Dollero Exchange
PS: Our followers might be aware that we have already posted this trade once, but it was unfortunately taken down for breaking the house rules. So, we are just reposting this trade because the setup just got better and we would like to keep the trade on the timeline
Follow us for more analysis & Feel free to ask any questions you have, we are here to help
If you like our content, Please leave a like and a comment, it keeps us going
One possible caveat is the overall economy. Just around the start of the upgrade, on the 13th of September, we will receive the CPI data for August. If the number is higher than expected, it could cut the rally short and send cryptocurrencies plummeting. However, if it comes lower than expected, it might add an additional boost to the rally. Despite these potential headwinds, we still believe that the enthusiasm around the Merge will prevail and send the cryptocurrencies higher.
We picked LDO for this bet because of its higher potential returns (that obviously come with higher risk) and its solid technical setup. On the graph, we can see that LDO is forming a head-and-shoulders pattern (H&S) on a daily while the RSI is bottoming, thus pointing to a higher price. One option is to use the neckline (purple line) for the entry. In that case, we would recommend using the entry also as a stop loss. Though it is a safer choice, you might have to reenter the trade several times if you get whipsawed off the trade. The other option is to go long now (as we did) and hope that the H&S completes the pattern. In that case, we would use the red line for the stop loss; that gives you a nice risk/reward ratio of 5.5 if we use the green line as a profit target. However, the profit line certainly doesn't serve as a ceiling, and we expect LDO to go much higher. The sky is the limit if everything goes well with the Merge
Happy Trading!
Dollero Exchange
PS: Our followers might be aware that we have already posted this trade once, but it was unfortunately taken down for breaking the house rules. So, we are just reposting this trade because the setup just got better and we would like to keep the trade on the timeline
Follow us for more analysis & Feel free to ask any questions you have, we are here to help
If you like our content, Please leave a like and a comment, it keeps us going
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