Insights Analysis Video Streaming Leader LPT Poised for Growth

Video Streaming Leader LPT Poised for Growth

June 21, 2024 Analysis
BITmarkets | Video Streaming Leader LPT Poised for Growth

Livepeer stands out in the blockchain ecosystem as the first decentralized video streaming protocol built on the Ethereum blockchain.

The fundamental aspects of Livepeer are currently complemented by a very attractive technical situation, offering traders an opportunity for a high risk-to-reward ratio.

Livepeer's native token, LPT, has endured a rather tough week after it enjoyed significant growth the week prior. Is it a good time to buy LPT?

4-hour time frame analysis

LPT1.1

LPTUSD - 4 Hour Time Frame

The basic idea behind buying positions in this case is the strong support zone visible on the daily timeframe, complemented by another crucial bullish parameter, the Order Block (OB).

The price reached this zone during the short-term correction into the Discount zone, while also tapping into the initial Sell-Side Liquidity.

This is essential for trade entry, as the execution of so-called "Smart Money" orders requires sufficient volume, which is typically found just below the old highs and lows.

Currently, the last parameter needed to enter the position was formed when the price closed above the Fibonacci 0.5 resistance level, thus turning this zone into support.

Traders should set their Stop Loss (SL) order below the recent low and place the first two Take Profit (TP) targets at the Internal and External Buy-Side Liquidity levels.

The potential obstacle to this trade may be the resistance at the Fair Value Gap marked by the number 2. If the price reacts negatively to this resistance and fails to close above the 0.5 level, and conversely, if it closes below the support zone, traders should consider selling a portion of their long position for effective money management.

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