Key Points
- Lido DAO token’s price surged significantly due to the excitement around Ethereum ETFs.
- Despite a potential bullish breakout, top addresses reduced their holdings of the token.
The buzz around Ethereum ETFs has positively influenced the price of Lido DAO [LDO], causing a substantial price increase. The scale of the price appreciation was such that the crypto saw double-digit gains in just 24 hours.
Lido’s Performance Amid Ethereum ETF Approval
Lido was among the tokens that profited most from the Ethereum ETF approval, with its price climbing by over 40% in the past week. CoinMarketCap data shows that the token’s value increased by over 11% in the last 24 hours. At the time of writing, it was trading at $2.53, with a market capitalization exceeding $2.25 billion.
Interestingly, while Lido saw double-digit growth, the value of Ethereum (ETH) only increased by 1% during the same period. In fact, LDO’s price might perform even better as a bullish pattern is anticipated on its price chart.
Anticipating a Bullish Breakout
World of Charts, a well-known crypto analyst, recently tweeted about a bullish flag pattern. The recent price increase pushed LDO’s price towards the upper limit of the pattern, potentially leading to further growth of nearly 250% in the coming weeks.
To determine if LDO could break above the bull pattern, we analyzed data from Santiment. Our analysis showed a sharp increase in LDO’s exchange outflows last week, indicating a rise in buying pressure. This was confirmed by exchange data showing increased LDO purchases.
The token’s supply on exchanges dropped sharply, while its supply outside of exchanges increased. Increased buying pressure often leads to price increases, raising the likelihood of a bullish breakout. However, the token’s supply held by top addresses fell on 24 May, suggesting that whales sold their holdings for profit.
The daily chart was analyzed to understand whether LDO would maintain its bull rally. The MACD technical indicator showed a clear bullish advantage in the market.
The Relative Strength Index (RSI) also showed a sharp increase, suggesting a sustained price increase. However, the token’s price did touch the upper limit of the Bollinger Bands, which often leads to price corrections.
Despite this, investor confidence in Lido remains high. Santiment’s data revealed that LDO’s weighted sentiment spiked on 24 May after a dip.
