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What bear market? This token is quietly making new highs, up 300% towards Bitcoin in 2022


Unus Sed Leo (LEO) has not solely survived the crypto market massacre within the first half of 2022 however has really posted main beneficial properties, bucking the large crypto crash.

LEO beats crypto kingpin Bitcoin

LEO, a utility token used throughout the iFinex ecosystem, completed the primary half of 2022 towards Bitcoin at 32,793 satoshis, up virtually 300%.

The token additionally rallied 55% towards the U.S. greenback in the identical interval, hitting $5.80 for the primary time since February 2022. In distinction, Bitcoin (BTC) and Ether (ETH), the highest two crypto property by market cap, fell by over 60% and 70%, respectively.

Prime-ranking crypto property and their performances per timeframes. Supply: Messari

That has made it the best-performing crypto asset within the high ranks to date into 2022.

What’s driving LEO value larger?

The crypto market wiped more than $2 trillion off its valuation within the first half of 2022, led by price hikes, the collapse of Terra (LUNA) — now officially Terra Classic (LUNC), and systemic insolvency troubles throughout main cryptocurrency lending platforms and hedge funds.

LEO/BTC daily price chart. Source: TradingView

LEO’s price also suffered a 25% decline after hitting its all-time high of $8.14 in February 2022. Nevertheless, it fared better than the rest of the crypto market, which fell nearly 60% in the same period.

The reason behind this outlier token could be its starkly different attributes compared to other digital assets.

IFinex, the parent company of Bitfinex, launched LEO in 2018 in a non-public sale spherical to boost $1 billion. In return, the agency dedicated to using 27% of its revenues from the earlier month to purchase again LEO till all tokens are faraway from circulation.

Additionally, iFinex pledged to purchase again LEO tokens utilizing funds it had misplaced through the August 2016 Bitfinex hack.

In February 2022, the U.S. Division of Justice recovered 94,000 BTC out of 119,754 BTC. That coincided with LEO rallying to its report highs in each Bitcoin and the dollar-based markets.

Overheated rally?

LEO’s run-up towards Bitcoin dangers exhaustion as a result of its value’s rising divergence with momentum.

Intimately, LEO’s value has been making larger lows whereas its every day relative energy index (RSI) prints decrease highs. As a rule of technical evaluation, this divergence exhibits an absence of upside conviction amongst merchants.

LEO/BTC every day value chart. Supply: TradingView

The RSI can be above 70, a historically “overbought” space and a promote indicator. 

LEO now maintains its bullish bias whereas holding above its interim assist stage at 26,220 sats, coinciding with the 0.236 Fib line of the Fibonacci retracement graph drawn from 4,382-swing low to 32,965-swing excessive. 

A decisive shut beneath 26,220 sats may have LEO eye a run-down towards the 38.2 Fib line close to 22,046 sats, down 25% from Jul’s value.

Curiously, the extent is close to one other assist stage — the 50-day exponential transferring common (50-day EMA; the crimson wave within the chart above).

LEO/USD bearish rejection

LEO’s ongoing value run-up had it briefly shut above a vital resistance stage at round $6.24, as proven within the chart beneath.

LEO/USD every day value chart. Supply: TradingView

The extent was instrumental in capping the token’s upside makes an attempt between February and April earlier this 12 months. It once more prompted merchants to safe income on July 1, leaving LEO with a big upside wick and thus hinting at bearish rejection.

LEO’s recent price trends are full of bearish rejection candles, together with its 57% intraday value rally on Feb. 8 that preceded a 28.5% correction by the tip of that quarter.

Conversely, the token’s bullish rejection candle on June 18 resulted in a 50% value restoration, as mentioned above.

Associated: On the brink of recession: Can Bitcoin survive its first global economic crisis?

If the given fractal performs out, then LEO will threat a value reversal to its interim assist stage of $5.52, which, coincides with the token’s 50-day exponential transferring common (50-day EMA; the crimson wave). That will imply a modest 9%-10% decline from July 1’s value.

But when the assist fails to carry, because it had in late April, LEO value then dangers testing its 200-day EMA (the blue wave) close to $5, a 17% decline general.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your individual analysis when making a call.