LDO Price In Accumulation Phase & Triggered Bullish Breakout: What’s Next

Key Insights

• LDO price has been defending the 200-day EMA since December.
• The Lido DAO price has surged by 23% in the past five days.

The LDO price has been struggling to exceed the $2.40 mark for the past few weeks. It has been defending a major support level of $1.50 since the last week of November. However, the price has recently witnessed buying pressure in the major support zone and exceeded the 20-day EMA.

In a wider time frame, the Lido DAO price has declined through a descending channel and triggered a breakout. Lido DAO saw a significant increase after the breakout from a recent long-term descending channel, which attracted the attention of both traders and whales.

Increased open interest and trades have shown the crypto market’s growing bullish force. That led investors to predict that LDO could soon reach the $4 benchmark.

LDO Price Displayed a Breakout From Descending Channel

LDO has set its price using a descending channel, made up of successively lower highs and lower lows between March and November 2024. When LDO crossed the upper trendline of the descending channel in late November, it broke out of its bearish pattern.

Breakouts of cryptocurrencies above existing supports are important indicators of a market recovery from a bear market.

With a 24-hour gain of 19.01% and a weekly increase of 3.26%, the Lido Dao token was trading at $2.08 at the time of writing, with a market capitalization of $1.85 billion.

The breakout coincided with an increase in trading volume, indicating fresh interest from investors. The $2.63 trading benchmark serves as a major roadblock to the movement of LDO crypto.

It will proceed to test the new price target of $4 if it closes strongly above this level.

LDO Price Hovering Near $2 Mark; Could Buyers Dominate Ahead?

When writing, the Lido DAO price was trading at $1.92. Its market value was $1.77 billion, and its 24-hour trading volume was around $203.26 million.

The LDO price has faced difficulty in exceeding the $2.1 mark thrice in January. Recently, the price has experienced selling pressure in this territory and has declined by 8%.

If sellers remain strong, the price may melt to the major support level of $1.5. Amid this bearish trend, if the price dives below the $1.5 level, it could generate selling pressure. This phase could be considered as a correction phase until the price remained over the major support level. Losing this level could bring profit booking, which may lead to a bearish trend.

On the other hand, if the LDO price surpasses the $2.40 mark, buyers may become confident. Suppose the price sustains this level, another rally can be anticipated.

LDO Price Forecast on a Wider Timeframe

The recent developments surrounding Lido DAO indicate a potential bullish trend fueled by significant buying pressure and a breakout from a long-term descending channel. The LDO price is defending crucial support levels and attracting increased trading volume. So, there is optimism that it could target the $4 mark if it closes strongly above the $2.63 resistance level.

However, caution remains as the price struggles to maintain momentum above $2. It is facing selling pressure that could push it back toward the $1.50 support. The outcome largely depends on market sentiment and whether buyers can sustain confidence to push for further gains.

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.