Unus Sed Leo (LEO) became the biggest loser in the market over the past 24 hours. The token, with a market capitalization of $6.26 billion, saw a 25% drop in value at press time.
Market sentiment suggests the current outlook could further accelerate the decline, with the asset at risk of falling well below levels established over the past 730 days.
LEO erases gains
LEO has erased its accumulated gains over the past year and has now turned negative, posting a notable deficit.
The decline has become more pronounced over the past 48 hours, as investors have positioned themselves against a potential rally and largely adopted a bearish stance.
Source: CoinMarketCap
Community sentiment data shows that among 30,200 investors, bullish sentiment has fallen sharply, from 72% on December 15 to just 14% at the time of writing.
With 58% of investors selling, the impact is far from negligible. This pressure has already been reflected in the spot market, which saw minimal activity over time but still saw a massive sell-off of $47,000.
Further decline could take shape if more investors turn bearish on the chart.
How far could the decline go?
Despite the recent decline that wiped out all of its 2025 gains, market analysis shows that LEO’s 2024 gains are now also at risk.
The chart shows that LEO is just one demand zone away from retesting its 2024 price level.
This demand zone, highlighted by a blue rectangle, acted as a consolidation zone between March and November 2024. After this consolidation period, the asset eventually broke out.
Source: TradingView
Typically, unfilled orders tend to stay in these areas, which could act as a potential catalyst if prices move back into this area.
However, if selling momentum intensifies, LEO could extend its decline beyond this level, placing 2024 prices as the next phase, with a return to the 2022 low not ruled out.
Cautious, but not completely bearish
To assess the likelihood of a move to the previously identified demand zone, AMBCrypto examined trends in key technical indicators.
Indicators suggest that the market remains cautious rather than outright bearish, leaving room for a potential rebound.
The Accumulation Distribution (AD) indicator declined over the past day, falling to 6.68 million, at the time of writing, its lowest level since June 16.
Despite the decline, the indicator remains in positive territory, suggesting that the current selling phase appears corrective and the bulls still retain overall control.
Source: TradingView
Further clarity is provided by the Money Flow Index (MFI), which measures whether cash inflows signal buying or outflows indicate selling pressure.
The IMF has fallen into oversold territory, dropping below 20. Historically, this level signals seller exhaustion and has often preceded market rebounds.
Although the chart does not indicate a specific rebound timeline and prices could still trend lower, the indicators suggest an increased likelihood of a faster recovery once selling pressure eases.
Final Thoughts
- LEO investors started to pull back as a majority of them turned bearish and put selling pressure on the asset.
- Technical structures show LEO is a key support area away from hitting a two-year low as bearish sentiment continues to build.
