LDO's Potential Upside of 250% – Thanks, Ethereum?

Buying pressure on Lido remained high last week
Most indicators and market sentiment looked bullish on the LDO charts

The hype around Ethereum ETFs had a positive impact on Lido DAO [LDO] as the token pushed the price up significantly. The price increase was so big that in the last 24 hours alone, the crypto registered double-digit gains on its charts.

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Lido’s bull meeting Will LDO continue to grow?

Lido’s bull meeting

Lido was one of the tokens that benefited the most from the adoption of Ethereum ETF, as its price rose by more than 40% in the past seven days. According to CoinMarketCapIn the past 24 hours, the value of the token has increased by more than 11%. At the time of writing, it was trading at $2.53 with a market cap of over $2.25 billion.

However, the interesting thing here is that while Lido grew by double digits, the value of ETH only increased by 1% during the aforementioned period. In fact, the price of LDO could do even better as a bullish pattern is now expected to appear on the price chart.

World of Charts, a popular crypto analyst, recently posted tweet reveals a bullish flag pattern. The latest price increase pushed the price of LDO to the upper limit of the pattern. A breakout above the same level could see further growth of almost 250% in the coming weeks.

Will LDO continue to grow?

To see if LDO would manage to break above the bull pattern, AMBCrypto analyzed Santiment’s data. According to our analysis, outflows from LDO exchanges have increased sharply over the past week. This indicated an increase in purchasing pressure. The fact that investors bought LDO was further proven by the stock market data.

Supply of the token on exchanges fell sharply, while supply outside exchanges increased. An increase in buying pressure often results in price increases, increasing the likelihood of a bullish breakout. However, supply of the token in the hands of top addresses fell on May 24 – a sign that whales were selling their holdings to make a profit.

Source: Santiment

We then analyzed the daily chart to better understand whether LDO would continue its bull rally. The technical indicator MACD showed a clear bullish upper hand on the market.

Moreover, the Relative Strength Index (RSI) also recorded a sharp increase, indicating continued price appreciation. Nevertheless, the price of the token reached the upper limit of the Bollinger Bands, which often leads to price corrections.