It has been a positive period for LDO, with buying pressure remaining strong over the past week. Market indicators and sentiment have generally been bullish for LDO, contributing to significant price appreciation.
The hype surrounding Ethereum ETFs has also had a favorable effect on Lido DAO (LDO), driving its price up considerably. In the last 24 hours alone, the cryptocurrency has recorded double-digit gains, reflecting its current bullish trend.
Lido’s Strong Performance Amid Ethereum ETF Approval
Lido (LDO) has shown impressive gains, particularly benefiting from the approval of Ethereum ETFs. Over the past 7 days, LDO’s price surged by more than 40%, and in the last 24 hours alone, it increased by over 11%. As of now, LDO is trading at $2.53 with a market capitalization exceeding $2.25 billion, according to CoinMarketCap.
Interestingly, while Lido experienced significant growth, Ethereum (ETH) saw a modest 1% increase during the same period. Analysts now anticipate a bullish pattern emerging in LDO’s price chart, suggesting the potential for further gains.
World of Charts, a renowned crypto analyst, highlighted a bullish flag pattern in a recent tweet. The latest uptick in LDO’s price has positioned it near the upper boundary of this pattern. A breakout above this level could propel LDO’s price to potentially increase by nearly 250% in the coming weeks.
Analysis of LDO’s Potential Bullish Breakout
Increased Exchange Outflows: Recent analysis indicates that LDO experienced a sharp increase in exchange outflows last week, signaling heightened buying pressure. This trend underscores investor interest in acquiring LDO, supported by exchange data showing a significant decline in its on-exchange supply while off-exchange holdings rose. Such buying pressure typically correlates with price increases, enhancing the likelihood of a bullish breakout.
Whale Activity and Price Dynamics: On May 24th, a notable decrease in LDO holdings by top addresses suggested profit-taking by whales, potentially influencing short-term price movements.
LDOUSDT. Source: TradingView
Technical Indicators: Analyzing the daily chart, technical indicators like the Moving Average Convergence Divergence (MACD) exhibited a strong bullish trend. The Relative Strength Index (RSI) also showed a sharp increase, indicating sustained upward momentum. However, LDO’s price nearing the upper Bollinger Bands suggests a potential for price corrections, despite investor confidence in Lido remaining robust.
Lido-DAO. Source: Santiment
Sentiment Analysis: Data from Santiment revealed a spike in LDO’s weighted sentiment on May 24th, reflecting renewed investor optimism following a previous decline.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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