Lido DAO (LDO) Holding Steady in Consolidation Zone, Breakout May Be Imminent

Key Takeaways

• Corrective Phase Completed: ABC correction found strong support at $0.92 (0.618 Fibonacci).
• Consolidation Zone: Price ranges between $0.92 (support) and $1.57 (resistance).
• Neutral Momentum: RSI shows balance; awaiting a breakout for confirmation.

The price of Lido DAO (LDO) is in a horizontal zone, consolidating after a decline from its $4 high ended in September.

A breakout attempt was made recently, but the price got rejected at the zone resistance, falling in a descending channel.

This decrease could be corrective, leading to a decisive move next, but we need further confirmation.

LDO Price Analysis

The daily chart for LDO shows a completed five-wave impulsive structure that peaked near $4 in January 2024.

Following the peak, the price entered a corrective ABC phase, which retraced to the 0.618 Fibonacci support level, reaching a low of $0.92 on Sept. 5.

This level has acted as a strong base for accumulation, with the price currently trading at $1.12 and showing signs of stabilization.

The Relative Strength Index (RSI) suggests neutral momentum, reflecting a consolidation phase after the corrective wave C bottomed out.

If the price sustains above $0.92, a reversal could begin, paving the way for a new impulsive wave.

However, the broader trend remains unconfirmed until the price breaks above the $1.57 resistance, which aligns with the 0.382 Fibonacci retracement.

Key Observations:

1. Corrective Phase Completed: The ABC structure retraced to the 0.618 Fibonacci level at $0.92.
2. Consolidation Zone: The price is consolidating between $0.92 (support) and $1.57 (resistance).
3. Neutral RSI: The momentum is balanced; we await confirmation of a breakout or further correction.

LDO Price Prediction

The LDO chart on the 1-hour timeframe highlights a corrective phase following a sharp rally that peaked at $1.47 on Nov. 10.

After completing the first impulsive wave (i), the price entered a wave (ii) correction, trading within a descending channel.

This correction led to a retracement just above $1 on Nov. 15, and today, this level has been revisited.

The RSI is currently neutral, indicating balanced momentum and leaving room for either continuation of the correction or a potential reversal.

The broader trend remains bullish, supported by the higher timeframe structure, but confirmation of the next impulsive wave requires a breakout above the descending resistance.

The $1 holding could confirm the bullish outlook and indicate that the next trend will lead to an upward breakout above the $1.50 area.

In that case, wave (iii) will be expected to bring LDO to a high of $2.25, while its final target would be $2.69. 

Key Levels to Watch:

1. Immediate Support Levels:
   • $1: Horizontal zone’s median line
2. Resistance Levels:
   • $1.57: 0.382 Fibonacci retracement of the larger move, the initial target for reversal.
3. Upside Targets:
   • $1.69: Wave (i) peak and key psychological resistance.
   • $1.92: 1.272 Fibonacci extension of the next wave (iii).
   • $2.25: 1.618 Fibonacci extension of wave (iii), likely midterm target.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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