The Lido DAO (LDO) price invalidated its previous breakdown with a sharp increase during the past two weeks. It is now getting close to a new all-time high price on Binance Exchange.
The LDO price is currently attempting to break out from a descending resistance line that has been in place since March. Doing so would be a strong sign that a bullish reversal has begun.
Lido DAO Price Reclaims Breakdown Level
The LDO token price had traded in a head-and-shoulders pattern since the beginning of the year. The head and shoulders are considered a bearish pattern, meaning that it usually leads to breakdowns.
As expected, the price broke down from the pattern on April 27 (red icon).
However, instead of undergoing an extensive drop, the digital asset reversed the trend shortly afterward and has increased since May 8.
The LDO price today is attempting to break out from a descending resistance line that has been in place since March. The daily Relative Strength Index (RSI) supports the continuation of the increase.
The indicator has moved above 50 (green icon), a sign of a bullish trend.
LDO Price Prediction for April: New All-Time High on the Horizon?
The technical analysis and price action from the daily time frame give a bullish LDO price prediction. There are several reasons for this.
Firstly, the price reclaimed the $1.80 support area after previously deviating below it (red circle). The level is crucial since besides being a horizontal support area it is also the 0.618 Fib retracement support level.
Fibonacci retracement levels operate on the principle that after a significant price change in one direction, the price will retrace or revisit a previous price level before resuming in its original direction.
The fact the price closed above this level indicates that the correction is complete.
Secondly, the movement since March resembles a descending wedge. The descending wedge is considered a bullish pattern, meaning that it usually leads to breakouts.
So, if a daily close above the line transpires, the next resistance will be at $2.80.
However, if the price gets rejected, it could fall down to the wedge’s support line at $1.50.
While this would be a bearish development, it would not invalidate the wedge and could still lead to a future breakout.
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