Lido DAO [LDO] has recently attracted the market’s interest by breaking out of a prolonged downward trend, showing considerable bullish strength. The cryptocurrency has seen an 8.36% increase in value over the last 24 hours and was priced at $2.22 at the time of writing.
Following this price spike, LDO is now testing the crucial resistance level of $2.50, positioning itself for further upward movement. The sustainability of this upward trajectory, however, remains uncertain as resistance levels could determine the next direction for the token.
Lido cryptocurrency price action and significant resistance levels
The recent breakthrough above the $1.68 support level for LDO signals a notable shift in market sentiment. The coin has surged by over 32% in the past week, showcasing its potential for further gains.
Furthermore, the $2.50 mark now serves as a pivotal resistance level, and a successful breach here could pave the way for a rally towards $3.50. On the flip side, a failure to sustain levels above $2.50 might lead to a consolidation phase or a pullback, necessitating cautious optimism among traders.
LDO technical analysis and momentum indicators
The technical analysis strongly favors a bullish trend. For instance, the MACD histogram indicates a positive value of 0.198, suggesting an increasing interest from buyers. Additionally, the True Strength Index (TSI) sits at +0.43, indicating a robust uptrend.
These indicators validate the bullish momentum in the market. Nonetheless, it is essential for traders to keep a close eye on any potential weakening in these indicators, given the ongoing volatility in the market.
Network usage and address statistics
Insights from on-chain data showcase interesting patterns. The number of active addresses has risen by 9.95% over the last week, indicating heightened participation from current users.
However, the creation of new addresses has declined by 21.43%, underscoring a cautious approach among new entrants. Therefore, while the network is currently active, sustained price growth may necessitate broader adoption and increased participation in the ecosystem.
Market sentiment and trading interest
Market sentiment has also seen a boost, with open interest in LDO futures surging by 26.25% to reach $156.03 million. This uptick in speculative interest reflects the optimism surrounding LDO’s potential for further appreciation.
Furthermore, the alignment between price movements and Daily Active Address (DAA) metrics suggests that network activity is supporting the recent price surge.
A potential rally towards $3.50 for Lido DAO seems plausible if the current bullish momentum persists and network activity remains robust.
Nevertheless, breaking and maintaining levels above $2.50 is critical for sustained growth. Traders are advised to stay alert for any signs of waning momentum in the market.