The price of Lybra Finance (LBR) has reached a significant support level, which has the potential to initiate a rebound. If so, it could increase by over 80% from its current level.
Lybra Finance is a DeFi protocol in the field of Liquid Staking Derivatives (LSDfi), allowing investors to mint a stablecoin (eUSD) from ETH and liquidity staking derivatives such as stETH and rETH. Notably, eUSD has achieved a market capitalization of over $100 million within a few weeks of its launch.
Important support level
The price of Lybra Finance (LBR) has risen along with an ascending support trendline since May 13th. It has increased by over 2,000% during this period, reaching an all-time high of $4.6.
Although the price has declined significantly since the ATH, a sharp correction after such a strong rally is necessary to balance the market.
Currently, the price is bouncing off the significant support level at $1.35, formed by a horizontal support area and the ascending support trendline. If it continues to do so, a strong recovery is likely to follow. The nearest target is found at $2.7, marking an increase of over 80% from the current level.
Descending parallel channel
The hourly chart shows that LBR has been trading within a descending parallel channel since May 30th. This is a bullish pattern that often leads to breakouts in the majority of cases. Indeed, the price is currently bouncing off the support line of the channel.
The hourly RSI indicator supports this possibility as it is bouncing from oversold territory, which previously led to a recovery (green arrow).
Therefore, the LBR price may rebound from the current level and rise at least towards the resistance trendline of the channel at $2.4.
Conclusion
The most likely prospect suggests that the LBR price will recover in the coming days. The nearest target is $2.4, with further potential to reach $2.7.
This viewpoint would be invalidated if the price breaks below the significant support level at $1.35.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
Read more:
- Radiant Capital (RDNT) Price Could Rise Strongly In The Coming Days, Here’s Why?
- Lybra Finance’s LBR Token Surges Over 10x In Two Weeks, Riding The LSDfi Wave