Reasons why LidoDAO price may increase by 10%

LidoDAO (LDO) price is currently trading at $3.14, suggesting potential upside of another 10%. LDO’s on-chain metrics are also showing signs of adding credibility to this optimistic outlook.

LidoDAO’s on-chain indicators turn bullish

LidoDAO price may exit integration based on on-chain metrics: Network Growth (NG), Transaction Volume, Whale Transaction Count (WTC), Social Dominance Rate.

In particular, between November 9, 2023, and December 16, 2023, LidoDAO’s network growth indicator dropped from a peak of 304 to 50. This decline indicates that new capital is flowing out. But after forming a stable bottom on December 16, the indicator continued to establish higher peaks. A trend reversal is a clear sign of new capital inflows, also known as renewed investor interest in LDOs.

LDO network growth | Source: Santiment

LidoDAO price has been volatile and is expected to rebound as buyers wait and see. This speculation can be confirmed by looking at the continued growth in trading volume and WTC since December 22, 2023.

The WTC indicator tracks transactions worth $100,000 or more and represents interest from these addresses. If WTC spikes after a price increase, it is considered a bad thing as whales may seek to take profits. On the contrary, if WTC increases after the asset crashes, it indicates that these investors are interested in altcoins.

Additionally, as LDO prices fell 16% between January 5 and 6, WTC data spiked, meaning whales were buying the dip. The increase in trading volume adds credibility to the optimistic outlook.

Lots of and Number of whale transactions I do | Source: Santiment

The continued growth in social dominance is another supporting factor for the bullish thesis, indicating that investors are actively talking about LidoDAO on social media platforms.

ratio LDO’s Social Dominance | Source: Santiment

LDO price hints at further gains

LDO is trading at $3.09, within a range of $3.02 to $3.61. The price attempted to move higher but encountered temporary resistance at $3.15. Therefore, if you want to move upward, you must overcome this obstacle.

If successful, LidoDAO will reach the midpoint of the range at $3.31, followed by the $3.41 mark.

Both the Relative Strength Index (RSI) and the Momentum Oscillator (AO) are showing steady upward momentum, adding evidence of a potential recovery.

price chart I do 1 hour | Source: TradingView

On the other hand, if the price breaks below the bottom of the range without recovering quickly, it will create a lower low and invalidate the bullish argument. In this scenario, LDO could drop nearly 2% and return to the nearby key support level at $2.96.

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According to FXStreet