UNUS SED LEO (LEO) saw a 0.62% price increase over the past hour, bringing its current value to $3.84. With a market capitalization of $3.57B, LEO remains a top 50 cryptocurrency by market cap. Trading volume over the past 24 hours reached $243,190, a relatively low amount compared to historical averages. This technical analysis will examine the key metrics around LEO's price action and uncover insights into where the asset may be headed next.

LEO has seen lackluster price performance over the past month, with gains of just 0.74%. However, zooming out reveals stronger upside momentum, with LEO up 14.30% over the past 6 months. This indicates the recent consolidation may be setting the stage for the next leg higher. Short-term traders have likely booked profits following the rally from $3.35 to the local high of $3.91 reached in late August.

Now, LEO appears to be building a base of support around the $3.80 level. This key psychological level also coincides with the 21-day moving average, making it an area of confluence. A break above $3.91 would likely signal a resumption of the uptrend, while a drop below $3.80 risks a decline back to the 50-day moving average around $3.65.

Will LEO Revisit All-Time Highs in 2023?

LEO hit its all-time high of $5.29 in May 2021 during a period of exuberance across the cryptocurrency markets. With sentiment now much more muted, traders may be wondering if LEO can return to record levels this year.

Several factors support the bull case for new highs in 2023. As a utility token for the Bitfinex exchange, LEO benefits from growing adoption and usage of the platform. Bitfinex volume has held strong this year even as competitors have declined. Additionally, LEO allows holders to enjoy discounts on trading fees on the exchange. If trading activity continues picking up into the end of the year, demand for LEO may rise.

However, LEO faces headwinds from the difficult macroeconomic environment. Persistently high inflation and a hawkish Federal Reserve have sapped risk appetite thus far in 2022. Should the U.S. enter a recession, appetite for speculative assets like LEO may suffer. While unlikely to revisit all-time highs this year, a return to the $4.50 to $5.00 range appears reasonable if broader crypto sentiment improves.

Is Now a Good Time to Buy LEO?

With LEO consolidating following its summer rally, investors may wonder if now offers an attractive entry point. Dollar-cost averaging can help mitigate timing risks. For traders, signs of a breakout above $3.91 could signal a resumption of the uptrend.

LEO's use case as a utility token with benefits for Bitfinex users gives it an edge over many speculative altcoins. Additionally, LEO's circulation supply is capped at 1 billion tokens, giving it a verifiable scarcity. As a large-cap cryptocurrency, LEO also benefits from greater liquidity and exposure than smaller assets.

However, risks remain elevated across all crypto assets given macroeconomic uncertainty. LEO also lacks exposure and adoption outside of the Bitfinex ecosystem. As with any altcoin, position sizing is key—LEO should represent a small portion of an overall diversified crypto portfolio.

Conclusion

In summary, while LEO has stagnated in recent weeks, its technical and on-chain metrics remain constructive. LEO appears to be building momentum for a breakout above $3.90 that could spark a rally back towards its all-time high. While unlikely to hit new records this year, LEO looks poised to outperform many altcoins if broader sentiment improves. Dollar-cost averaging can help investors gain exposure at a reasonable price point. However, caution is still warranted given the precarious macro environment.