Lido DAO (LDO) Price: A Potential 70% Surge as History Looks Set to Repeat Itself
The price of Lido DAO (LDO) is currently trading within a long-term pattern. It could increase by over 70% if historical patterns repeat.
The price of Lido DAO (LDO) has been trading within an ascending parallel channel since its all-time low at $0.46, formed in June 2022. The price has tested both the support and resistance of the channel several times, confirming the validity of the pattern.
In the two previous instances, after bouncing up from the channel’s support line (green arrows), the LDO price rapidly rose to the channel’s resistance.
In the week of October 16 to 22, 2023, the price bounced up again from the channel’s support line (yellow arrow). If history repeats, the LDO price could increase by an additional 70.73% to the channel’s resistance at $3.94.
The weekly RSI (Relative Strength Index) supports the possibility of further uptrend as it breaks above the descending resistance line and is above the 50 level.
However, if the price cannot sustain the upward momentum, it may fall to the channel’s support line at $1.70.
The daily chart shows that the LDO price declined after being rejected by the channel’s midpoint at $2.70 on November 24. This triggered a breakdown from the $2.1 horizontal support area on December 17.
However, this turned out to be a deviation (red ellipse) as the LDO price regained this support zone today. Such deviations are often followed by strong upward movements.
The daily RSI signals a similar outlook as the weekly timeframe, supporting the potential for further gains.
Therefore, the LDO price could rise to the channel’s midpoint in the coming days.
Technical indicators suggest that the LDO price will rise to the channel’s midline at $2.70 in the next few days. Breaking above this line will help LDO rise by over 70% to the channel’s resistance at $3.94, as it has done twice before.
This bullish outlook may be invalidated if the price breaks below the $2.10 zone on the daily timeframe. In that case, it could decline by 25.68% to the channel’s support line at $1.70.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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