Lido DAO (LDO) Jumps 32% as Breakout From Descending Wedge Signals Bullish Reversal

LDO has pushed past a crucial resistance level at $1.36, aiming for higher levels. The next significant resistances are $2.04 and $2.48

Lido DAO (LDO) price soared 32% in 24 hours, boosting its market cap to $1.22 billion, a 19.3% increase. Trading volume also surged by 188.65% to $306.58 million.

This volume spike indicates strong buying pressure that could support further gains. At press time, Lido DAO trades at $1.36, reflecting a bullish sentiment that may fuel continued upward momentum.

Chart analysis: Breakout from a descending wedge and price prediction

The recent price action on LDO’s chart shows a breakout from a descending wedge pattern, which usually signals a bullish reversal. As a result, this breakout suggests a potential upward trend.

LDO has pushed past a crucial resistance level at $1.36, aiming for higher levels. The next significant resistances are at $2.04 and $2.48, which could serve as key price targets. If Lido DAO continues this breakout, a sustained rally might be on the horizon.

With the current momentum, the $2.04 level seems to be within reach. Moreover, if LDO maintains its upward pace, breaking past $2.04 could lead to a push toward $2.48. This resistance point, if surpassed, would spark even stronger bullish movement.

However, achieving this target depends on maintaining buying interest. Strong volume and price strength will be crucial for LDO to hit these ambitious levels.

LDO price DAA divergence: Bullish confirmation?

The Price DAA Divergence chart shows a 96.7% positive divergence, indicating that on-chain activity aligns with the recent price surge. This divergence usually precedes further gains, signaling strong support from user activity.

This on-chain strength enhances confidence in a sustained rally, adding weight to the bullish scenario.

Market sentiment: Open interest surge strengthens outlook

Furthermore, open interest surged by 47.4% to $112.97 million, suggesting that traders are increasingly engaging with LDO.

This increase in open interest, along with rising volume, points toward a bullish sentiment in the derivatives market, indicating growing confidence in LDO’s rally potential.