LEO's 0.08% Price Drop to $3.66: Key Takeaways for September 12, 2023

UNUS SED LEO (LEO) saw a slight 0.08% price drop over the past hour to $3.66, down from $3.6624 yesterday. This continues the downward trend for LEO over the past month, with the token down 7.5% over the last 30 days. However, the longer-term 6 month view shows only a 2.03% decline, indicating the recent dip may just be short-term volatility.

With a market capitalization of $3.41 billion, LEO remains a top 50 cryptocurrency by market cap. Trading volume over the past 24 hours was $304,950, relatively low compared to the overall market cap. This could indicate lower levels of interest and buying activity for LEO currently.

Below we analyze the key takeaways from the data and trends for LEO:

Steady Decline Over the Past Month

The most notable trend is the 7.5% price drop LEO has seen over the past month. This downward trajectory indicates bearish sentiment and selling pressure taking hold. However, the monthly losses aren't drastic.

LEO's price remains significantly above lows seen earlier in 2023 and 2022. The token still has strong support around the $3 level where it has bounced back from repeatedly. Therefore, the current correction may present a buying opportunity for investors believing in LEO's long-term potential.

Short-Term Volatility amid Overall Stability

While LEO has shed 7.5% over the past month, losses over the past 6 months are just 2.03%. This shows that longer-term, LEO has held relatively stable support. The token likely found a bottom through 2022's crypto winter.

Shorter timeframes paint a different picture. Over the past day LEO lost 0.89%, extending a week of 0.41% declines. Over the past hour the token dropped a further 0.08%. This points to short-term bearish momentum. However, the 1-6 month charts suggest volatility while holding key support.

Low Trading Volumes Could Exacerbate Volatility

24-hour trading volumes of just over $304,000 are quite low relative to LEO's multi-billion dollar market cap. Thin trading activity typically leads to higher volatility, as liquidity is lower. Any sudden spikes of selling or buying pressure can move prices more dramatically.

Therefore, the 7.5% monthly drop may have been exacerbated by low trading volumes. This also means a surge of renewed interest could spark a rapid recovery. Investors should watch trading activity as an indicator of stability and potential price swing catalysts.

Opinion: LEO Likely to Rebound to $5+ in 2023

My prediction based on the data is that LEO will rebound from its recent corrections and achieve over $5 in 2023. Support around $3 has been rock solid and held repeatedly. This zone should provide a floor for major downside.

Meanwhile, crypto sentiment and total market capitalization appear to be gradually improving. If crypto enters a new bull market, LEO is primed to capitalize on renewed upside momentum. Its relatively low trading volumes mean sudden increased demand could provide large price spikes.

I expect LEO to consolidate between $3-$4 in the short-term, before breaking out above $5 in late 2023 as bullish momentum returns. The token has had several rallies towards $7 in the past, and a push towards this resistance level is achievable next year.

Will LEO's Long-Term Trend Turn Bullish in 2023?

Despite recent volatility, LEO has shown impressive long-term stability and resilience. The cryptocurrency has defended key support levels around $3, avoiding any major crashes. This points to long-term viability for LEO, with a solid core community and use case.

As crypto gradually recovers from a brutal bear market, LEO seems primed to take advantage. Its low trading volumes could enable large price spikes on any surge of renewed interest and buying pressure. If crypto sentiment trends positively in 2023, LEO may break out above $5 and reverse its longer-term downtrend.

Is Now a Good Time to Buy the LEO Dip?

LEO's 7.5% price drop over the past month presents a potential dip buying opportunity. While short-term momentum is bearish, the token appears oversold based on the solid support at $3. This zone has repeatedly bounced LEO back up strongly after pullbacks over the past year.

For long-term believers in LEO, its current discounted price may offer an attractive entry point. The technicals indicate the pullback may be short-lived, with a recovery and move back above $4-$5 likely in coming months as overall crypto sentiment improves.

Dollar cost averaging around current levels could be a prudent move for investors wanting LEO exposure at a relative discount. Waiting for clear confirmation of bullish momentum returning is advisable though, as further volatility is expected.