Lido DAO (LDO) has been on a remarkable upward trend recently, seeing a 27% increase in the past week. As of today, the token is trading at $2.14, reflecting a 10.06% gain in the last 24 hours. The altcoin’s growth doesn’t stop there, as it has also marked a 12.68% rise on the monthly charts. Despite these impressive gains, LDO is still about 88.45% below its all-time high (ATH) of $18.62, raising questions about whether Lido DAO is still undervalued and if it can sustain this bullish momentum.

Bullish Sentiment and Price Potential

The recent surge in LDO’s price has been driven by a technical breakout. Lido DAO has broken out of a bullish pennant pattern, a chart formation typically seen when an asset is consolidating before a major price move. This breakout suggests that a continuation of the bullish trend could be in the cards, particularly if the breakout is supported by strong volume. In fact, according to technical analysis by Kartha, LDO could see an 80% rally in the near future. This price movement could take the token to new price targets between $3.39 and $3.82.

Such technical patterns often signal that buyer demand is gaining momentum, and this has been reflected in Lido DAO’s price action. The bullish pennant breakout has fueled increased buying activity, further fueling the rally. If the token continues to see support at current levels, we could expect more upward momentum in the coming weeks.

Growing Adoption and Investor Confidence

One of the critical factors driving LDO’s growth is the increasing adoption of Lido DAO’s staking platform. Lido DAO enables users to stake Ethereum and other assets without needing to lock up their tokens for long periods. As Ethereum’s staking rewards become more attractive, Lido DAO is positioned to benefit from growing interest in decentralized finance (DeFi) and liquid staking solutions. This has led to a rise in the number of active addresses using Lido DAO, which in turn increases network activity and solidifies LDO’s long-term value.

Market analysis also highlights the growing confidence among Lido DAO’s investors. A key indicator of this sentiment is the Long/Short Ratio, which shows that 59.94% of positions in LDO are long, while 40.06% are short. This positive ratio suggests that most investors are bullish on LDO’s future performance, which is aligned with the strong technical and market fundamentals supporting its rise.

Undervaluation and Market Sentiment

Despite its recent surge, Lido DAO remains undervalued compared to its historical peak. Its price is still significantly lower than its ATH, indicating that there’s substantial room for further growth if the bullish trend continues. According to Santiment, LDO’s price divergence from the network’s increasing utility suggests that the token could eventually rise to reflect this growing demand.

The market sentiment around LDO also looks promising. The DMI (Directional Movement Index) shows that the upward momentum for LDO is gaining strength. The +DI value has surged to 27.36, signaling that buyers have the upper hand, while the ADX, which measures trend strength, has been declining, suggesting that the bearish pressure is losing steam.

Additionally, LDO’s circulative NVT (Network Value to Transactions ratio) is declining, which highlights that the asset’s market cap is not yet reflecting the full potential of its increasing adoption. This is another indication that LDO could see more upside, as it catches up with its network’s growing utility.

Price Outlook

Given the current technical setup, market sentiment, and increased adoption, Lido DAO appears well-positioned for continued growth. If the current momentum holds, LDO could reach resistance levels at $2.5 and $2.8, marking the next price targets. However, any potential corrections in the market could lead to a temporary dip to $1.92, which would present an attractive buying opportunity for those bullish on LDO’s longer-term outlook.

In conclusion, Lido DAO’s strong growth, combined with the token’s undervaluation compared to its ATH, suggests that LDO has the potential for further price appreciation. With strong buyer demand, increasing network utility, and a favorable market sentiment, Lido DAO could continue its bullish run in the months ahead.