Lido DAO price surges 17% to $2.4 amid news around new Ethereum spot ETF filing by BlackRock. Consolidation expected before next breakout.
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Lido DAO (LDO) is one of the major contributors to the Ethereum ecosystem, especially when it comes to liquid staking. So, it was not surprising to see the token LDO rally massively alongside ETH price following new developments around spot exchange-traded funds on Thursday.
BlackRock revived the dying hype around ETFs after reports that the largest fund manager in the world had made a step towards filing the first Ethereum spot ETF.
BlackRock has made first step towards filing for a spot Ether ETF. I just confirmed on the website myself. Nice catch by @SummersThings https://t.co/mLKIhKdiI6
— Eric Balchunas (@EricBalchunas) November 9, 2023
As Ethereum price climbed reaching highs above $2,100, so did Lido DAO, which at the time of writing is trading at $2.3, 17% in the last 24 hours.
The remarkable breakout was backed by a significant increase in trading volume to $378 million, representing a 280% growth in the same period. There was a subsequent hike in the market cap by 17% to $2 billion, with LDO ranking #30 among other cryptos.
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Can Lido DAO Price Reach ATH At $3.3
Lido DAO price has comfortably stayed in bullish hands since the October support at $1.4. Its recovery above all three moving averages, starting with the 50-day Exponential Moving Average (EMA) (red), the 100-day EMA (blue), and the 200-day EMA (purple), reinforced the bullish grip, which made LDO more attractive to investors.
A buy signal from the Moving Average Convergence Divergence (MACD) strengthened the bullish thesis in LDO price while the break above the falling trendline as observed in the chart, sealed the deal for the bulls.
Now that the uptrend appears to have slowed down due to the resistance at $2.4, possibly caused by the need for traders to lock in the gains, a minor correction followed by consolidation is expected.
Without the pullback, it would be difficult for Lido DAO price to keep trending higher. Sweeping liquidity at lower levels means that bulls can build the momentum for the next move above $2.4 and bring the all-time high (ATH) around $3.3 within reach.
Bullish Crosses Seal The Deal For LDO
A couple of bullish crosses on the same daily chart add credibility to the uptrend. These patterns occur when a short-term moving average crosses above a long-term moving average.
In LDO’s case, the 50-day EMA first crossed above the 100-day EMA forming a golden cross. Now it’s about to flip above the 200-day EMA to solidify the bullish grip. Golden crosses assure traders of the uptrend’s continuity such that they can keep their positions open while waiting for an extended uptrend.
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