LDO is currently changing hands at $0.3242, an increase of 16.79 percent over the last day. The LDO’s token rose to $0.3429 as an intraday high prior to its current trading price. Contrary to much of the cryptocurrency market’s trends today, LDO managed to trade against the current flow. Bitcoin had dropped by 0.78 percent over the last 24 hours as Ethereum also shed 0.96 percent.
Strong volume supported the upward action, with the token jumping to $117.88 million in trading volume, which is over a threefold jump from the previous day. Sharp price increases with thin volume typically don’t last but with prices and volume moving in sync, it normally points out that traders are actively engaging with real intent. Not only did the token gain because it is technically sound. In a day that saw a double announcement from a duo of significant projects, the fundamental case for buying the token has come into sharper focus.
The major catalyst driving the LDO price move
LDO gains came after two key announcements. Firstly, Lido added support for transferring wstETH, making the use of Robinhood and this is what simplifies the process of staking for retail investors. This removes the need for several wallets while easing up how the market participants benefit from staking and access DeFi through their assets.
Also, Lido partnered with Anchorage Digital, which will allow institutions to both mint and redeem wstETH on a regulated custody system. In addition to the Web3SOC certification, this makes Lido all the more attractive to larger investors, as do Lido’s upcoming improvements to its staking program that make it easier to work with for both the retailers and the institutions.
The breakout that is shaping the current price action
On the technical side, this digital asset has shown some improvement. LDO traded in a range of consistent down movement through most of the past several months since crashing from above $0.65 last year. It landed and found a footing around $0.25, and on every occasion the support failed to yield, buyers continued to come in to defend that zone.
This was the base where the new rally began. The price already climbed past $0.30, a major resistance level that pushed the price down several times this year since March. Following this situation, the buyers stepped in and managed to push the price above that resistance, which indicated their aggressiveness.
The rally briefly tested as high as $0.3429, and following that, it took some correction. The 127.2 percent Fibonacci extension sits right around that zone, which serves as the first resistance of consequence for price after the breakout. Rallies frequently encounter some selloff around a Fibonacci extension, and this is because the market participants usually book some of their profits at these levels.
For now the key factor will be if the bulls are able to defend $0.30 as support and this is because if they do, this breakout will make sense, and the next upward targets can come into play. In the other case, if the price closes back beneath it, the latest surge is just another rally attempt that can fail.
The rally looks stretched but the momentum continues to improve
Momentum looks positive for the LDO rally, with the price above the 7-day and 30-day moving averages and the MACD also turned positive and highlighting that the selling pressure is declining. However, the 200-day moving average is standing significantly higher and shows the long-term trend is still trending up. At the time of writing, the 7-day RSI is standing at 84.89, and this is depicting that the LDO rally is currently overbought in the short term. The important thing here is that it is not a confirmation of an upcoming crash for this digital asset but it is highlighting more of a consolidation before the next move to the upside.
