 price has eyed a rebound as it tests key support, with bullish signals flashing on technical indicators.){kind=link}
- LDO has rebounded from $1.47 support, eyeing $1.80 resistance; failure could trigger a drop to $1.35.
- TD Sequential signaled trend reversal, but an RSI below 50 suggested weak buying momentum.
- Increased trading activity and open interest hint at potential volatility and price breakout.
Lido DAO (LDO) traded at $1.61 at the time of writing. The token showed signs of a potential rebound after testing its lower boundary within a parallel channel.
The LDO price recently bounced from $1.47, a crucial support level held multiple times. If the buyers can continue to hold, LDO will move toward support of $1.80. This remained the first significant level of resistance.
Any break above this zone could propel the Lido DAO price toward $2.10 and $2.40, where a prior sell-off occurred. However, support of around $1.47 can no longer be sustained, and further price depreciation to $1.35 is possible.
TD Sequential Indicator Signals Possible Rebound
Crypto analyst Ali Martinez pointed out that the TD Sequential indicator on the 12-hour chart has issued a buy signal. This tool identified potential trend reversals, suggesting that selling pressure may be fading.
However, if this buy signal remains intact, the LDO price should find further bullish momentum above $1.47 – 1.50 support. However, a failure to retrace above this level could kill the setup.
This could further open the door for a Lido DAO price drop toward $1.35 or lower. Traders want to see whether the signal results in a sustainable price recovery.
Technical Indicators Show Mixed Momentum
The Bollinger Bands (BB) suggested that LDO was oversold before bouncing when it recently touched the lower band at $1.379. The middle band (20-day SMA) was an immediate resistance at $1.859.
At the same time, the upper band at $2.339 could be a possible breakout target if momentum gains strength.
The Relative Strength Index was 43.34, under the neutral 50 and with weak bullish momentum. When RSI crosses 50, it may show that buying pressure is increasing.
Moving ahead, a move above 60 may confirm more bullish control. A breach at $1.859 might enable the LDO price to reach $1.379. However, a breakthrough from this might allow it to surge to $2.00 or higher.
Market Data Shows Increased Trading Activity
With a 24-hour trading volume of $191.36 Million, the Lido DAO price has increased by 3.95% in the past day. Meanwhile, it was still down -13.18% in seven days.
With a circulating supply of 900 million LDO, its rugged price placed its market capitalization at $1.44 Billion. According to Coinglass data, futures OI rose 1.03% to $130.35 Million. Furthermore, the trading volume increased 3.37% to $280.12 Million.
With higher open interest comes more leveraged positions opened by traders, meaning the LDO price has greater volatility potential.
A rally closer to $1.80 and beyond would come into play. This could happen if the Lido DAO price bounces off its support at $1.47-$1.50. On the other hand, if the LDO price goes below key support, liquidations could accelerate selling pressure.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
