LEO Cryptocurrency Experiences 25% Drop, Approaches Two-Year Low: Potential for Rebound?

Unus Sed Leo (LEO) has emerged as the top underperformer in the cryptocurrency market, facing a sharp decline of 25% in just 24 hours. As of the last update, the token holds a market capitalization of $6.26 billion and is at risk of dropping below price levels seen over the past two years.

Key Takeaways

LEO has lost all gains from the past year, with bearish sentiment increasing among investors.
Limited market activity has resulted in significant selling pressure, exemplified by a sell-off of $47,000.
The token is approaching a critical demand zone that could halt further declines and spark a rebound.
Technical indicators suggest cautiousness but not complete bearishness, hinting at a potential recovery as selling pressure subsides.

LEO cryptocurrency experiences a significant drop

LEO's Declining Gains

LEO has effectively erased its annual gains, slipping into a negative trend with a pronounced deficit. Over the last two days, many investors moved to short positions and adopted a bearish outlook, contributing to the token's decline.

LEO community sentiment

According to community sentiment analysis, bullish sentiment among a sample of 30,200 investors has plummeted from 72% on December 15 to only 14% now. With 58% of investors opting to sell, the impact has been significant. Additionally, the spot market has shown minimal activity but recorded a notable $47,000 sell-off. If more investors maintain a bearish stance, the price may decline further.

Potential Depth of the Decline

Although LEO has lost all gains from 2025, market investigations reveal that its 2024 gains are also in jeopardy. The current chart indicates that LEO is just one demand zone away from revisiting its 2024 price levels. This demand zone, marked by a blue rectangle, served as a consolidation area between March and November of 2024, before the asset broke out.

LEO price chart

Usually, unfilled orders remain active in such zones, which could provide some support for the price if it retraces into this area. However, if selling pressure escalates, LEO could see a decline extending beyond this point, raising the possibility of revisiting 2022 low prices.

Cautious Market Perspective

To evaluate whether LEO will move into the noted demand zone, AMBCrypto analyzed key technical indicators. The current indicators show caution in the market rather than outright bearishness, which may allow for a potential rebound.

The Accumulation Distribution (AD) indicator has seen a decline over the last day, landing at 6.68 million—the lowest level since mid-June. Nonetheless, it remains in positive territory, indicating that this selling phase is likely corrective, with overall buying power still intact.

LEO technical indicator

Further insights come from the Money Flow Index (MFI), a measure of liquidity movements that distinguishes between buying and selling pressures. The MFI has dropped into oversold territory, falling below the 20 mark. Historically, this indicates seller exhaustion and often precedes market rebounds. While the chart does not specify a timeline for a rebound and lower prices might still occur, the indicators suggest a growing probability of a quicker recovery once selling pressure diminishes.

Conclusion

As LEO approaches significant price levels not seen for two years, traders and investors should monitor market sentiment and technical indicators closely. The interplay of selling pressures and demand zones will likely dictate the token's near-term price movements, ultimately shaping its medium to long-term outlook in the cryptocurrency landscape.