LDO is catching everyone’s eye after its price finally broke out of the sideways pattern it was stuck in. The sudden move up shows things might be changing for this DeFi token. Here’s what’s going on with this crypto – where it might go and what levels to watch for.
The price of LDO kept falling from February through August. During this phase, the LDO price formed lower highs and lower lows, reflecting consistent selling pressure. Every time it tried to move up, those downward trendlines kept pushing it back down, trapping it in this downward path.
After falling for so long, the price finally settled down between August and October, moving sideways without big changes. This period saw LDO fluctuating within a defined range, with neither buyers nor sellers establishing dominance. The lower boundary near $0.948 emerged as a strong support level, repeatedly holding against selling attempts, while resistance formed around $1.35.
What you'll learn 👉
Breakout Signals a Trend Reversal
Following the consolidation, LDO’s price broke out of its range to the upside. This breakout marked a clear transition from bearish to bullish sentiment. The price pushed through the $1.35 resistance level, invalidating the prior downtrend and signaling a potential reversal.
The breakout’s strength was further confirmed as LDO moved beyond another key level at $2.009, which had previously acted as resistance. This upward momentum underscores the growing demand for LDO as market conditions shift.
Support and Resistance Levels Guide Future Price Action
Key support and resistance levels now play a pivotal role in LDO’s price trajectory. The $0.948 level remains a critical support zone, forming the base of the consolidation period. Conversely, $2.009 has transitioned from resistance to a potential support level, strengthening the bullish case if the price sustains above it.
These technical levels offer traders a framework to assess market conditions. A retest of $2.009 as support could reinforce confidence in the uptrend, while a failure to hold this level may suggest a temporary correction.
Read Also: Polkadot (DOT) Price to Resume 2x Rally When Price Reclaims This Level Again
Market Outlook for Lido DAO
The recovery rally following the breakout has positioned Lido Dao for potential further gains, provided the price maintains its momentum. Traders will closely watch the $2.009 level for signs of continued strength or a possible pullback.
As Lido DAO’s price demonstrates bullish momentum, its future performance will depend on market dynamics and whether key support levels remain intact. The token’s journey from a prolonged downtrend to an upward trend highlights its growing relevance in the crypto market.
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