Lido DAO price clears key weekly resistance, but will LDO bulls rally?
|- Lido DAO price has overcome the weekly hurdle at $3.23, signaling a bullish outlook.
- Due to the slowdown in altcoins momentum, LDO rally could take a while.
- But when the altcoin does rally, investors can expect at least a 35% rally to $4.62.
- A breakdown of the $2.65 level could invalidate the bullish outlook.
Lido DAO (LDO) price has been consolidating for more than two months. Slowly but surely, LDO has overcome key hurdles, signaling a bullish outlook, but a breakout rally could take time.
Also read: Lido DAO Price Prediction: LDO consolidation eyes retest of $4.56
Lido DAO price ponders a breakout rally
Lido DAO price overcame the $3.23 weekly resistance level on January 5 and has slipped into consolidation since then. Although LDO briefly slid below the aforementioned level, it has recovered, indicating that the buyers are active.
While a breakout rally for Lido DAO price is likely, it may not happen immediately. The reason is that the altcoin markets, which are like musical chairs, have slowed down. The rotation of capital from one altcoin sector to another has slowed down vastly, and only a few tokens are noticing volatility.
Until this outlook improves, Lido DAO price could continue to waste leverage traders’ time as it trades above $3.23. But if LDO does trigger a massive uptrend, the first target is $4.62, which is roughly 35% away from the current position of $3.41.
LDO/USDT 1-day chart
The 30-day Market Value to Realized Value (MVRV) Ratio indicator supports this potential bullish outlook for Lido DAO price. This index tracks the average profit and loss of investors who purchased LDO in the past month. A higher number would suggest that investors are in profits and could realize them, triggering a sell-off and vice versa.
For LDO, the 30-day MVRV has dropped from 19% on February 20 to near zero as of this writing. Currently, the Lido DAO price has gone from $3.63 to $3.06, registering a 15% drop. While a further downside move is unlikely, it would send the index into negative territory, which would be ideal for buying the dips.
LDO MVRV 30-day
On the other hand, if the market outlook fails to improve and investors start booking profits, altcoin markets could slide lower. In such a case, Lido DAO price could breach the $3.23 and $3.12 support floors.
However, if the Lido DAO price produces a daily candlestick close below $2.65, it would produce a lower low and invalidate the bullish thesis. In such a case, LDO could revisit the $2.43 support level.
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