Lido DAO (LDO), the governance token for the Lido protocol, has been demonstrating strong bullish signals in recent trading sessions. The token has gained around 9% in the past 24 hours, which has led many market observers to speculate on the possibility of a breakout rally that could push the price toward the $3 mark.

LDO’s Recent Price Action

Lido DAO’s price has been fluctuating within a bullish range recently, and its upward trajectory is supported by significant market activity. At the time of writing, LDO is trading at approximately $2.35, after a strong surge of 8.83% within the last 24 hours. This growth is part of a larger pattern, as Lido DAO has seen a consistent increase of around 2% over the last week. Over the past month, the altcoin has more than doubled in value, giving investors significant returns.

Lido DAO’s market capitalization is now $1.99 billion, placing it in the 65th position among cryptocurrencies. This rise has been driven by several factors, including the ongoing positive sentiment in the broader cryptocurrency market, growing demand for decentralized finance (DeFi) products, and strong technical indicators.

Technical Indicators Point to Further Upside

The technical indicators for LDO are showing a predominantly bullish picture. Notably, the 50-day and 200-day exponential moving averages (EMA) have formed a Golden Cross. This pattern typically signals an increase in buying momentum, as the shorter-term EMA crosses above the longer-term EMA. This crossover often precedes a rally, suggesting that Lido DAO could continue to climb in the coming weeks if the market conditions remain favorable.

Additionally, the Moving Average Convergence Divergence (MACD) has shown a positive crossover, which is another sign of upward momentum. The MACD histogram, which had previously been in the red, has shifted toward the positive side, indicating a reduction in selling pressure. While these signals aren’t foolproof, they strongly suggest that LDO may continue to experience price appreciation.

Key Price Levels to Watch

For Lido DAO to maintain its bullish outlook, it must stay above certain critical levels. The first significant resistance level is around $2.26. A sustained move above this level could pave the way for further gains, with the next target being the $2.675 range. A successful break above this resistance could potentially propel Lido DAO toward the $3 mark, a level not seen since mid-2024.

However, if LDO faces rejection at these resistance levels, it may retrace to its nearest support level around $1.84. A stronger pullback could push the price toward the $1.41 support zone. Traders will need to watch these key levels closely, as a failure to hold above $2.26 could indicate a shift in market sentiment and potentially lead to a more significant decline.

Conclusion

Lido DAO has been showing strong technical strength, with a potential breakout looming as it approaches key resistance levels. The recent bullish price action, combined with favorable technical indicators such as the Golden Cross and MACD crossover, suggest that LDO could push higher in the coming weeks. However, sustaining above the $2.26 level will be crucial for the continued upward momentum. If LDO can break past its resistance levels, a move toward the $3 range is possible. Nonetheless, the altcoin must hold crucial support levels to avoid potential pullbacks.