Lido DAO’s nativetoken, LDO, experienced a remarkable 68% increase in price over the past week.
This surge is largely attributed to the anticipation surrounding the first Lido DAO Tokenholder Update scheduled for Thursday. Following these developments, discussions are underway about the potential for further short-term price increases for LDO.
Surge in Lido DAO
The rise in LDO’s price is supported by a significant increase in the number of new addresses entering the market. Over the past week, the number of new addresses surged by 292%, rising from 109 to 428. This marks the highest level recorded in the past five months, indicating positive sentiment regarding the future of LDO among investors.
Many new investors are taking positions to capitalize on potential developments expected to be announced during the token update. Following this event, it is anticipated that LDO will maintain its momentum in the coming period.
The frequently referenced NUPL (Net Unrealized Profit/Loss) metric shows that LDO is approaching a critical threshold. Historically, when NUPL reached zero, it typically signaled a turning point in price movements. This suggests that the current upward trend might soon encounter a correction.
As the NUPL indicator crosses into neutral territory, it indicates that investors may be inclined to realize their profits, warranting caution. Such a development could pose a short-term decline risk in the price. Experts emphasize the importance of investors closely monitoring these data points.
Resistance Levels and Pullback Possibilities
The recent surge pushed the LDO price to $1.53, positioning it just below the resistance point at $1.56. The forthcoming tokenholder update has sustained the optimistic atmosphere in the market. However, surpassing these levels is critical for maintaining momentum.
According to experts, if LDO surpasses the $1.56 level, the next target is projected at $1.82. The recent rise in new addresses and the excitement over the update could contribute to the price advancing towards the psychological threshold of $2.00. However, the risk of investors selling to secure profits may limit the peak to a smaller range.
Fueled by Ethereum
$ 4,744‘s rise and the SEC‘s liquid staking approval, LDO Coin continues to hold significant potential.
Should investors choose to cash in on the recent surge, the LDO price may fall below $1.34. In such a scenario, discussions suggest a potential pullback that could lower the price to $1.18. This could render the current upward trend invalid.
