Lido DAO (LDO) Approaches Critical Resistance at $1.33, But Will It Break?

Lido DAO [LDO] has been actively driving growth with its Simple DVT Module now supporting over 2,250 validators and securing 72,000 ETH.

Lido DAO [LDO] price analysis reveals a consolidation phase as the token faces key resistance at $1.33. Despite the recent price increase, a closer examination of the technicals and on-chain metrics suggests that LDO might encounter difficulties breaking through this resistance level.

At press time, LDO was trading at $1.16, up 4.24% in the last 24 hours. The token’s immediate support was around $1.08, while the next resistance stood at $1.33.

Lido DAO price analysis: Resistance at $1.33 to hold?

Lido DAO approached a critical resistance level at $1.33, and the recent price movements had sparked interest. The Bollinger Bands suggested that volatility remained low, indicating a consolidation phase.

However, the Stochastic RSI pointed to overbought conditions, raising the possibility of a near-term pullback. Support was evident around $1.08, but Lido DAO would need significant bullish activity to break through $1.33.

Therefore, traders were watching closely to determine whether this resistance would hold or if the token would gain enough momentum to move higher.

Daily active addresses decline: A concern for LDO?

While Lido’s technical advancements were promising, the recent decline in daily active addresses was a cause for concern. The number of active addresses had dropped from 213 to 141, which indicated reduced user engagement.

This could limit Lido DAO’s ability to break through the $1.33 resistance as on-chain activity slowed. The decline could signal that Lido’s upgrades had not yet fully captured the attention of the broader market.

MVRV ratio: What does it mean for LDO price action?

The MVRV ratio, which currently stood at -0.84%, revealed that most investors were holding LDO at a loss. This could mean less incentive for holders to sell, potentially supporting the price in the short term.

However, if the MVRV ratio turns positive, profit-taking could increase, putting downward pressure on the token. This dynamic makes the MVRV ratio a critical factor in determining whether LDO can sustain its upward momentum and challenge the $1.33 resistance.

Open interest rises: Growing trader confidence

Open interest for Lido DAO has risen by 1.98% to $64.9 million. This increase signals growing confidence among traders, as more positions are being opened.

However, for this to translate into a bullish breakout, volume will need to follow. This rise in open interest will be closely monitored to see if it drives LDO toward a breakout or another rejection at $1.33.

Lido DAO’s developments are promising, but the declining daily active addresses and overbought Stochastic RSI present challenges. Although the increasing open interest and MVRV ratio offer some optimism, breaking through the $1.33 resistance will require sustained engagement and volume.

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