UNUS SED LEO (LEO) saw a solid 1.48% price increase over the past 24 hours to trade at $3.90. With a market capitalization of $3.62 billion, LEO remains a top 50 cryptocurrency by market cap.
In the past day, LEO trading volume reached $307,000 - a relatively low amount compared to major cryptocurrencies like Bitcoin and Ethereum. This indicates low volatility and steady, consistent trading activity rather than major price swings driven by whales or institutions entering and exiting positions.
Short term momentum has turned positive for LEO, with the price up 0.35% over the past hour. However, zooming out shows mixed results across different timeframes. Over the past 7 days, LEO is up just 1.96%, underperforming leading cryptocurrencies like BTC and ETH.
The 1 month view is slightly concerning, with LEO down -2.09%. This indicates buying pressure has stagnated in recent weeks. However, the 6 month view shows tremendous upside of +17.08%, demonstrating LEO's strength in long term trends.
So what key insights can traders glean from this LEO price action? Here are the main takeaways:
Low Volatility Presents Opportunities for Swing Trades
With trading volume and volatility decreasing, LEO appears to be consolidating within a price range. Savvy traders can capitalize on these conditions by entering swing trades - taking a long or short position with a timeframe of several days to weeks. The low volatility increases the chance of success.
Watch for Breakout Above $4 Resistance
LEO is approaching the psychological resistance at $4. If bulls can push the price decisively above this level, it would signal a resumption of the uptrend. Traders should watch for an increase in volume on a breakout as confirmation. The next upside target would be around $4.50.
Don't Chase FOMO - Wait for Throwbacks to Enter Long
With LEO up nearly 20% in the past 6 months, some traders may experience FOMO - fear of missing out - and be tempted to chase price higher. It's better to wait patiently for temporary dips or throwbacks to $3.75 to initiate long positions with a better risk/reward profile.
Consider Hedging Long Exposure With Put Options
The 1 month downtrend shows the potential for a deeper pullback. Traders who are long LEO can hedge by buying put options. This defines the maximum loss while retaining upside exposure. The August $3.50 puts provide inexpensive downside protection.
LEO Could Revisit All Time Highs in 2023
Looking ahead, LEO appears poised to continue its long term uptrend heading into 2023. The token has consolidated and held most of the gains from its parabolic 2021 rally. With bullish sentiment returning to crypto markets, LEO could revisit its all time high around $7.50 within the next 6-12 months as part of the next major crypto rally.
Should You Buy LEO After the Recent 1.48% Price Surge?
With LEO rallying 1.48% in the past 24 hours to $3.90, traders may be wondering if now is the time to buy. There are pros and cons to consider:
On the bullish side, LEO has shown strength in long term trends, gaining 17% in the past 6 months. It appears to be consolidating and gearing up for a move higher, especially if crypto markets regain their bullish momentum. Buying during consolidation often leads to the best entry points before big breakouts.
However, the lackluster price action in the past month indicates buying pressure is stalling. Also, the $4 level is a tough resistance zone LEO has struggled to break. Therefore, chasing the price here carries risks. A better strategy may be waiting for throwbacks or more decisive breakouts above $4 before buying.
Overall, LEO looks positioned to trend higher in 2023. But in the short term, traders should wait for more bullish confirmation such as a high volume breakout above $4 or retest of support around $3.75 before entering new long positions.
Is LEO a Good Long Term Investment for Crypto Portfolios?
With LEO up 17% in the past 6 months but still down 66% from its all time high, investors may wonder if it deserves a spot in long term crypto portfolios. There are arguments on both sides:
The bullish case is that LEO remains a top 50 crypto with strong fundamentals. As the utility token for the Bitfinex exchange and iFinex ecosystem, it has real world use cases. Crypto exchanges often see massive growth over time, which could significantly boost LEO's value.
However, LEO has high correlation to Bitcoin, lacking a unique value proposition. Also, regulatory risks for the Bitfinex exchange could weigh on LEO. Investors might find digital assets with more differentiation like smart contract platforms or DeFi tokens better long term holds.
Overall, LEO does have solid potential but mainly relies on the rising tide of crypto markets lifting all boats. It likely warrants a small allocation in diversified portfolios, but shouldn't be a core holding compared to blue chips like BTC and ETH.