Lido DAO (LDO) is on the verge of a breakout and is eyeing a surge in its value, mirroring the broader market sentiment and growing interest in the crypto sector. The token has successfully formed a double bottom pattern, and on a breakout, it may lead the rally towards $1.87 resistance.
At the time of writing, DAO is trading at $1.16 with a 24-hour trading volume of $93.9 million and a market capitalization of $1.04 billion. The DAO price over the last 24 hours is showing stability, but over the last week it is also down by 9.04%.
Source: CoinMarketCap
Also Read: Lido DAO (LDO) Shows Bullish Growth Potential: Will It Reach $6.15?
Moreover, the crypto analyst, Jonathan Carter, highlighted that Lido DAO (LDO) is now sitting at a critical neckline level following a five-month-long base-forming process.
That prolonged consolidation is a sign that selling pressure has been absorbed within the market and might be a preparation for a breakout. Traders eagerly wait because a successful retest of the neckline can confirm a strong bullish reversal setup.
Technical analysis indicates a continuation of the bullish trend if supported by the neckline and further reinforced by the 50-day moving average (MA50). Historically, this convergence of levels of support has predicted reversals in momentum in the crypto market and thus is a preferred setup both for intraday traders and long-term investors.
Source: X
Analysts pointed out many targets on the price chart, starting with a first barrier at $1.40, then $1.57, and a potential break to $1.87. Each step represents a major milestone in an LDO’s rally, representing a further rise in market optimism and a potential breakout to the upside if bull trends persist.
Latest derivative data registers a growth of 13.52% in trading volume at $271.17 million, reflecting renewed activity and interest within the market. Although open interest has decreased slightly by 3.64% to $223.60 million, this could be interpreted to mean that while traders remain active, overall leveraged positions remain fairly cautious.
Source: Coinglass
The OI-weighted funding rate stands at 0.0071%, implying a neutral to slightly positive sentiment among leveraged traders. A low positive funding rate implies long positions will only receive a slight premium to shorts and is consistent with cautious optimism and not unjustified leverage-driven speculation.
Source: Coinglass
Also Read: Lido DAO (LDO) Growth Pushes Ethereum Staking Value, Price Targets $2.55
