Key Takeaways:
- Lido DAO’s native token LDO price has been on a bull run since March 26.
- Meanwhile, the LDO price has formed a bearish technical pattern.
NEW DELHI (CoinChapter.com) — Liquid staking platform Lido DAO witnessed enhanced on-chain activity between March 27 and April 3. It coincided with the LDO price rising nearly 40% from March 26’s daily low of $2.016.
Lido shared in a tweet that the platform’s total value locked (TVL) grew by 1.03% in a week due to increased staking deposits across Ethereum (ETH), Polygon (MATIC), and Solana (SOL).
Moreover, the platform’s weekly share of new ETH deposits was 18.7% of the total Ethereum deposits.
The increased interest helped the LDO prices start a rally, but the token failed to move above resistance near $2.86. Long upper wicks on the Lido DAO’s token’s recent daily candles indicate bears are aggressively defending the price level.
LDO price has failed to close above the immediate resistance level since March 4, earlier this year. The token flipped the resistance for a couple of weeks on Feb 14, but LDO could not hold the level. If the bears continue to pare gains, the Lido DAO token might fall to support near $2.50.
Breaching the immediate support level could result in the LDO price dropping nearly 23% to test the 200-day EMA (green wave) support near $2.07 before recovering.
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Conversely, breaking and consolidating above the immediate resistance level could help the Lido DAO token rise to $3.4 before downside corrections pare gains.
The relative strength index for the LDO token remains neutral, clocking at 58.39 on the daily charts.
LDO Price Forms A Bearish Triangle Pattern
The Lido DAO token’s price has been moving inside a bearish technical pattern called the descending triangle.
The descending triangle is a bearish continuation setup with a falling resistance line that caps upside attempts and a flat support that prevents declines. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
Currently, the Lido DAO token is testing the negative-sloped trendline of the pattern. If LDO price exhausts the pattern with high volume, the token price might drop nearly 59% from current levels to reach $1.11 before recovering.
Declining volumes suggest LDO price rally would likely fail to break above the upper trendline of the bearish pattern.
