In the cryptocurrency world, altcoin price increases always attract attention. The rise in a cryptocurrency in May is also of this type. Everyone is wondering why the increase. Let’s have a look at the details.
Altcoin is rising breathlessly
Lybra Finance (LBR) price has reached a key support level with the potential to start a recovery. In such a case, an increase of more than 80% from its current level is possible. Altcoin Lybra Finance is a DeFi protocol in the Liquid Staking Derivatives (LSDfi) space. It allows investors to issue a stablecoin (eUSD) from ETH and liquidity staking derivatives such as stETH and rETH. In particular, eUSD has reached a market cap of over $100 million within a few weeks of its launch.
The price of Lybra Finance (LBR) has rallied since May 13 with an ascending support trendline. It has risen over 2,000% during that time, reaching an all-time high of $4.6. The price has dropped significantly since ATH. So, in a sense, the breathless journey has come to an end. However, after such a strong rally, a sharp correction is necessary to stabilize the market. Currently, the price for the altcoin is bouncing off the key support level at $1.35 formed by a horizontal support area and an ascending support trendline. If it continues like this, a strong recovery is likely to occur. The closest target is at $2.7, which marks an increase of over 80% from the current level.
Is a new rally coming?
The hourly chart shows that altcoin LBR has been trading inside a descending parallel channel since May 30. This is a bullish pattern that often leads to breakouts in most of the cases. Indeed, the price is currently bouncing off the support line of the channel. The hourly RSI indicator supports this possibility as it bounced off the oversold zone that had previously led to a rebound (green arrow). Therefore, there is an exit from the current level for the LBR price. Therefore, it could at least rise towards the resistance trendline of the channel at $2.4.
The most likely expectation is that the LBR price will recover in the coming days. The closest target is $2.4. Also, the price has the potential to reach $2.7. This outlook will be invalidated if the price drops below the key $1.35 support level. When we look at Kriptokoin.com, May has been an extremely good month for altcoin. However, the decline towards the end of the month points to a correction. Therefore, the next process can be interpreted as an uptrend. Let’s see what the coming days will bring for altcoin.
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