Key Takeaways:
- Lido DAO whale illustrates strong LDO accumulation sentiment in the market.
- The mysterious entity had purchased $40 million worth of LDO tokens since November 2021
- Lido DAO technicals hint at a 25% price rally in March
NEW DELHI (CoinChapter.com) — Lido DAO (LDO) could rally 25% in March owing to a mix of supportive technical and fundamental indicators.
Strong Lido DAO Accumulation Signals
One of the primary bullish signals for LDO comes from whale activity. Data tracker Lookonchain notes that a mysterious investor had accumulated LDO en masse since November 2021, when the crypto market peaked, and is now sitting on handsome profits.
Notably, the whale purchased nearly $40 million worth of LDO from Binance at an average rate of around $2.50 per token. As a result, he has earned about 6% in paper profits since November 2021, amounting to around $2.58 million.
The strong accumulation signals align with Lido DAO’s growing popularity as the leading Ethereum (ETH) staking provider. The platform enables users to bypass Ethereum’s 32 ETH deposit requirement to become validators on its proof-of-stake blockchain.
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As of March 7, Lido DAO had received 5.49 million ETH (worth about $8.64 billion) from its customers.
The demand for Lido DAO services will likely increase after Ethereum undergoes its Shanghai hard fork in April. The network upgrade will reportedly enable users to withdraw their locked Ethereum funds on demand.
Technical Bounce Ahead
From a technical perspective, LDO eyes a strong rebound after teasing an ascending channel’s lower trendline as support.
The said trendline has earlier served as an accumulation point for LDO traders. Meanwhile, its bounces have exhausted near the ascending channel’s upper trendline, a phenomenon that could repeat in March.
In other words, LDO’s price could reach $3.34, up 25% from current prices. Conversely, a breakdown below the lower trendline could land the token near $2.23.
