UNUS SED LEO (LEO) saw a slight 0.12% price increase over the past hour, bringing its current value to $3.82. With a market capitalization of $3.57 billion, LEO remains a top 50 cryptocurrency by market cap. In this report, we'll analyze LEO's latest price movements and trading volume, identify key support and resistance levels, and provide an opinion on where LEO could be headed over the coming months.

Over the past 24 hours, LEO has seen $192,370 in trading volume. This is relatively low compared to LEO's 30-day average daily volume of $213 million, indicating decreased interest and trading activity. Over the past week, LEO is up 5.35%, reversing some of the losses from earlier in the month. However, LEO is still down 0.03% over the past month.

Looking at the 1-hour candlestick chart, LEO bounced off support around $3.80 before climbing to its current level. There is resistance around $3.85, which capped upside moves earlier this week. Breaking above this level could see LEO test the next resistance around $4.00. On the downside, LEO has support at $3.75 and $3.65. Losing these levels would turn the short-term outlook bearish.

Could LEO Revisit All-Time Highs in 2023?

LEO hit its all-time high price of $8.34 in May 2019, shortly after launching. Since then, it has fallen dramatically to current levels around $3.80. With LEO down over 50% from its peak, could a recovery rally bring LEO back to retest its highs in 2023?

There are several factors that could fuel an LEO price surge. First, renewed interest and speculation in altcoins as Bitcoin shows strength could provide a tailwind. Additionally, expanding utility for the LEO token and new exchange features and products from Bitfinex could increase demand. LEO rewards and discounts for Bitfinex users are an incentive to buy and hold LEO.

However, LEO is still structurally tied to Bitfinex and its user base. Major adoption outside of Bitfinex may be needed to justify a 250%+ rally back to all-time highs. LEO would likely need Bitcoin and the overall market cap to be in a full-blown bull market to reach such lofty levels again. But with the right catalysts, LEO revisiting $8+ cannot be ruled out next year if market conditions align favorably.

How Will Regulation Impact LEO and Other Exchange Tokens?

Regulation remains one of the biggest wildcard factors impacting cryptocurrencies. How regulators treat exchange tokens like LEO could significantly influence their value and utility.

If regulations restrict exchange tokens or disallow exchanges from offering benefits and discounts for using their native token, it could severely dampen demand and use cases. Both retail and institutional investors would be less inclined to buy tokens like LEO if their advantages disappear due to regulatory mandates.

However, regulation can also promote adoption if it provides legal clarity and guidelines. Having an established regulatory framework could make investors and businesses more comfortable utilizing exchange tokens. But the regulatory environment is still ambiguous overall.

As regulators provide more guidance around cryptocurrencies, it could go either way for exchange tokens. But increased clarity should be seen as a positive development overall for the maturation of the crypto space. LEO and other exchange tokens will need to be flexible and ready to operate within potential new legal parameters.

Conclusion

LEO saw a slight price uptick over the past hour but remains stuck under key resistance levels. LEO is down from its all-time high but could potentially rally back toward $8 if market conditions improve in 2023. However, regulatory uncertainty persists, which could significantly impact exchange tokens depending on how regulators treat them. With crypto still in a relatively early stage, LEO and the overall market will continue evolving in the years ahead.