5 January 2024
An analyst has explained that Lido DAO (LDO) could rally toward a new all-time high of $6 if a sustained breakout above this pattern occurs.
Lido DAO Has Been Forming An Ascending Triangle Recently
In a new post on X, analyst Ali discussed an Ascending Triangle that has been taking shape in Lido DAO’s weekly price chart. An “Ascending Triangle” is a pattern in technical analysis that, as its name suggests, has a triangular shape.
This pattern has two main lines: an upper level that’s horizontal (that is, parallel to the time-axis) and a lower level with some finite slope. The former connects highs in the price, while the latter is created by joining higher lows.
Like any other such pattern, the upper level is likely to resist the price, while the lower level can be a potential support point. As the lower line here slows upwards, this consolidation channel gets narrower as the price moves forward.
A break out of either of these levels can be significant, as it can suggest a continuation of the price trend in that direction. Naturally, a break above the triangle can be positive for the price, while an exit below indicates the breakdown of the bullish pattern.
There is also a similar, but opposite, pattern to the Ascending Triangle called the “Descending Triangle.” In the case of this pattern, the horizontal line is below, while the sloped line is above, and the triangle narrows towards the downside.
Now, here is the chart shared by Ali that reveals the Ascending Triangle potentially forming for Lido DAO in its 7-day price:
As displayed in the above graph, the LDO weekly price has appeared to have been moving inside an Ascending Triangle pattern for a while now. Recently, the price has surged and is now retesting the horizontal line of the pattern.
“Keep a close eye on the $3.30 level!” says the analyst. “A sustained weekly close above this mark could trigger a bullish breakout, potentially propelling LDO toward a new all-time high of $6.”
Such breakouts above the triangle can be comparable in size to the triangle’s height, which is why Ali has selected this possible target for the cryptocurrency. From the current asset price, such a rally to a new all-time high of $6 would mean an increase of more than 76%.
It remains to be seen how the Lido DAO price develops in the coming days and if the coin can finally escape out of this Ascending Triangle, potentially setting itself up for a major rally.
LDO Price
At the time of writing, LDO is trading around $3.4, up 18% in the last week.