During the previous week, Lido DAO [LDO] has encountered consistent rises in its price trends, registering a 27% increase.
Presently, at the time of writing, Lido DAO was being traded at $2.14. This shows a 10.06% upsurge in daily charts. Additionally, the altcoin has demonstrated noteworthy advancements on a monthly basis, escalating by 12.68%.
Despite the recent price spike, LDO continued to remain approximately 88.45% below its all-time high (ATH) of $18.62. The current market situation has drawn the attention of the community towards a potential sustained recovery.
In line with this, analyst Kartha has proposed a possible 80% surge, pointing towards a bullish breakout.
Sentiment in the Market
In his assessment, Kartha noted the breakout of the bullish pennant by LDO on the daily time frame.
When assets break out of this pattern, especially upwards, it signals the continuation of a bullish trend. Such a breakout generally accompanies high volume, indicating strong buying momentum.
As per his analysis, a successful retesting of this breakout could lead to a 60-80% bullish movement in the medium term. If this scenario unfolds, LDO could potentially reach levels between $3.39 and $3.82.
Analysis of LDO Charts
According to CryptoCrypto’s evaluation, Lido DAO was displaying a robust upward momentum currently, with buyers dominating the market.
This strengthening uptrend was reflected in the continuous rise of the +DI in the DMI, while the ADX has shown a decline.
Following a bullish crossover two weeks back, the +DI surged to 27.36, indicating strong momentum while the downtrend lost its strength.
Furthermore, LDO’s adoption rate and active users have been consistently increasing relative to its market cap. This was supported by a positive price DAA divergence, signifying a rise in active addresses.
Consequently, new addresses were entering the market, perceiving the altcoin as being undervalued.
This market trend was further validated by a decreasing NVT ratio, highlighting the expanding network utility while the market cap and value did not see a similar increase.
This indicated undervaluation, suggesting the potential for LDO to reverse its trend upwards to align with the rising network demand.
Lastly, investors in Lido DAO have shown a growing bullish sentiment, evident in the Long/Short Ratio. On a daily timeframe, long positions comprised 59.94% while shorts made up 40.06% of the total positions.
With a ratio of 1.50, it indicated that most investors were bullish and anticipated price appreciation.
In conclusion, LDO is signaling a possible sustained uptrend. With market participants leaning towards bullish sentiments, the altcoin might witness further advancements.
Therefore, under these circumstances, LDO could reclaim $2.5 with the next substantial resistance level at $2.8. Nonetheless, in the event of a correction, it could retract to $1.92.