Livepeer (LPT) Struggles but Finds Stability at Key Horizontal Support

Key Takeaways

• LPT testing major support zone.
• Potential reversal based on Elliott Wave count.
• Breakout target around 9.45 resistance.
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Livepeer (LPT) has been in a prolonged corrective phase, with its price forming a descending structure over the past several months.

However, recent price action suggests that LPT may have reached a key support level, potentially setting the stage for a bullish reversal.

This analysis evaluates the market structure, key levels, and potential future price movements.

LPT Price Analysis

The 4-hour chart shows that LPT has been trending downward since reaching its peak at nearly $27.50 in March 2024.

A clear Elliott Wave corrective structure (WXYXZ) has been unfolding, with the final leg (Z) now testing a strong horizontal support zone around $3.85–$5.00.

Historically, this region has acted as a demand zone, leading to major price rebounds.

Additionally, LPT remains within a large descending pattern, with price action bouncing off the lower trendline. This pattern typically signals exhaustion in bearish momentum and suggests the potential for an upward breakout.

The Relative Strength Index (RSI) is deeply oversold, further reinforcing the likelihood of an imminent reversal.

Overall, the larger trend suggests that while LPT has been in a prolonged correction, it is nearing a critical turning point. A successful defense of the support zone could lead to a major relief rally.

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LPT Price Prediction

On the 1-hour chart, LPT has formed a possible bottom structure near $5.00, with early signs of a breakout attempt. The price recently touched $4.67, marking what appears to be the completion of the corrective wave (Z).

The reaction from this zone is crucial, as it will determine whether a bullish reversal is confirmed.

If LPT maintains support above $5.00, the first upside target is the descending trendline resistance around $7.50. A breakout above this trendline would be the first strong confirmation of a bullish reversal.

In this scenario, LPT could target $9.45 (0.236 Fibonacci retracement), followed by $12.41 (0.382 Fib), where previous corrective waves encountered resistance.

However, if the price fails to hold above $5.00, further downside could be tested, with potential wicks into the $3.85–$4.00 range.

A break below $3.85 would invalidate the bullish outlook and signal a continuation of the downtrend.

The RSI on the 1-hour chart is attempting to push higher from oversold territory, suggesting that buyers are beginning to step in.

If RSI continues rising and price action follows, LPT could be in the early stages of a reversal wave.

LPT shows early signs of a potential bullish reversal, bouncing off a critical support zone. If the price sustains above $5.00 and breaks through descending trendline resistance, a larger relief rally could follow.

However, failure to hold support could result in further downside, making the $3.85 level a crucial invalidation point.

Key Levels to Watch

• Immediate Resistance: $9.45 (0.236 Fibonacci level).
• Key Resistance: $12.41 (0.382 Fibonacci retracement).
• Major Resistance: $14.80 (0.5 Fibonacci retracement).
• Immediate Support: $5.00 (current local bottom).
• Critical Support: $3.85–$4.00 (historical demand zone).
• Short-Term Target: Above $9.45 if momentum sustains.
• Invalidation Zone: Below $3.85.