Key Takeaways:
- Unus Sed Leo forayed into the top 20 cryptos after a moderate decline.
- The 4h chart features a falling wedge, forecasting an uptrend.
- Daily price action backs the short-term gains, while hinting at a consecutive decline
Yerevan (CoinChapter.com) – UNUS SED LEO, a cryptocurrency that describes itself as “the utility token at the heart of the iFinex ecosystem,” slid nearly 1% in the previous week, a moderate decline compared to the leading cryptos by market cap. As a result, LEO forayed into the top 20 and traded at $4.85 ahead of Monday’s New York session.
LEO’s four h chart features a Falling Wedge
Moreover, the token’s four-hour chart hinted at an uptrend ahead, based on a technical setup dubbed the Falling Wedge. The formation consists of two converging trendlines with a negative slope. They enclose the price action and lower its swing as the setup progresses.
The Falling Wedge is a bullish reversal setup. Once LEO exhausts the formation, it could pull off an upside move, equal to the maximal distance between the Wedge’s trendlines. Thus, the target price for Unus Sed Leo would stand at $5.57, a 15% uptrend from the current price.
Also read: LEO token resumes bull run as Judge denies main Bitfinex accused bail—here’s why.
However, before the reversal can occur, LEO has to conquer its 20 and 50-4h moving averages (red and orange) and the setup’s resistance. Meanwhile, the daily chart backed the LEO bulls in the short term.
Unus Sed LEO daily chart
The daily chart supported the Wedge’s forecast and pinned the short-term price target at the same level. However, the daily price action formed a Descending Channel, which hinted at a possible decline after LEO gains 15% and reaches the target.
In detail, the Descending Channel entails two parallel trendlines with a powerful mid-range. The token might break in either direction after the formation is complete. However, as long as the latter stays relevant, LEO will consecutively retest both the support and the resistance.
Also read: Bitcoin week ahead Ep22: Dollar’s bullish return could put BTC en route to $25-26K next.
As the token price retested the lower trendline on May 24, an uptrend to the resistance line is likely in the books, backing the four h chart technicals. Moreover, crypto analytical platform Santiment noted a heightened activity among Unus Sed LEO holders in the previous three weeks.
Also read: LEO token jumped 88% after DOJ seized $3.6B tied to Bitfinex hack of 2016.
