Ethereum
Potential 250% LDO Increase – Thanks, Ethereum?
- Buying pressure on the Lido remained high throughout last week
- Most indicators and market sentiment looked bullish on LDO charts
The hype around Ethereum ETFs have had a positive impact on Lido DAO [LDO] as the token has significantly increased in price. Such was the magnitude of the price appreciation that in the last 24 hours alone, the crypto saw double-digit gains on its charts.
The Lido bull rally
Lido was one of the tokens that benefited the most from the Ethereum ETF approval episode, with its price increasing by over 40% in the last 7 days. According to CoinMarketCap, in the last 24 hours, the value of the token has increased by more than 11%. At press time, it was trading at $2.53 with a market cap of over $2.25 billion.
However, what is interesting here is that even though Lido saw double-digit growth, the value of ETH only increased by 1% during the aforementioned period. In fact, LDO price could do even better as an uptrend is now expected to emerge on its price chart.
World of Charts, a popular crypto analyst, recently published a Tweeter revealing a bull flag pattern. The latest price rally pushed the LDO price towards the upper limit of the trend. A break above this level could lead to further growth of almost 250% in the coming weeks.
Will LDO grow further?
To see if LDO would manage to overcome the uptrend, AMBCrypto analyzed data from Santiment. According to our analysis, LDO FX outflows increased sharply last week. This indicates an increase in buying pressure. The fact that investors are buying LDO has been further proven by its stock market data.
The token’s supply on exchanges has fallen sharply, while its supply outside of exchanges has increased. An increase in buying pressure often leads to price increases, increasing the chances of a bullish breakout. However, the supply of tokens held by major addresses fell on May 24 – a sign that whales sold their holdings to make a profit.
Source: Santiment
We then analyzed its daily chart to better understand whether LDO would continue its bullish rally. The MACD technical indicator showed a clear bullish advantage in the market.
Additionally, the Relative Strength Index (RSI) also recorded a sharp rise, hinting at a sustained price rise. Nevertheless, the price of the token has touched the upper limit of the Bollinger bands, which often leads to price corrections.
Source: TradingView
Read Lido DAO [LDO] Prediction Pray 2024-25
That said, investor confidence in Lido remains high.
The same was demonstrated by Santiment data which revealed that after a decline, LDO’s weighted sentiment climbed on May 24.
Source: Santiment