Lido DAO price is about to explode 60% and break above $3

fxstreet.com 16 May 2023 08:16, UTC

Analytics

Lido DAO price received a rejection on Monday as bulls came back in full force.
$LDO tried to break an important resistance area but failed.
With strong bullish signals again this Tuesday, expect a rally that could extend all the way up to $3.37.

Lido DAO ($LDO) price has set the performance bar rather high for itself this summer. With bulls chasing price action higher on Monday, a rejection occurred as bulls ventured to attack $2.20, where both a pivotal level and the 55-day Simple Moving Average (SMA) are being used by bears as defensive structures. Once that area is reclaimed by bulls this week, expect to see a rally that could go well into the summer and hit $3.37 with a 60% profit in the books.

Lido DAO price to be the trade of the season out of the bunch

Lido DAO price is already heading for a very solid performance with a 10% gain already on record for this week. From the looks of it, bulls are back with a vengeance and have already erased all incurred losses for May. If bulls play this right, this could be the best recovery trade of the year, and $LDO is set to outperform some peers in the process.

$LDO first needs to pare the selling pressure from bears at $2.20, where they have built a fortress around that historically pivotal level and the 55-day SMA that resides nearby. With the bullish performance setting the tone for this week, expect to see that level being torn down later on Tuesday and bulls heading for $2.60. The rally should continue into July with a few catalysts along the way that could lift $LDO higher and head toward $3.37.

$LDO/USD 4H-chart

A threat to the downside could come with another rejection at $2.20 and one of the tail risks in the US inflating again, such as the on-again-off-again banking turmoil or the debt ceiling negotiations. Expect then to see a leg lower with $2 doubtful to hold. Rather look for $1.85 and the 200-day SMA in between $2 and $1.85 as a circuit breaker to slow down any violent drops depending on the severity of the tail risk or catalyst.

Share: Cryptos feed