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- Lido DAO price received a rejection on Monday as bulls came back in full force.
- LDO tried to break an important resistance area but failed.
- With strong bullish signals again this Tuesday, expect a rally that could extend all the way up to $3.37.
Lido DAO (LDO) price has set the performance bar rather high for itself this summer. With bulls chasing price action higher on Monday, a rejection occurred as bulls ventured to attack $2.20, where both a pivotal level and the 55-day Simple Moving Average (SMA) are being used by bears as defensive structures. Once that area is reclaimed by bulls this week, expect to see a rally that could go well into the summer and hit $3.37 with a 60% profit in the books.
Lido DAO price to be the trade of the season out of the bunch
Lido DAO price is already heading for a very solid performance with a 10% gain already on record for this week. From the looks of it, bulls are back with a vengeance and have already erased all incurred losses for May. If bulls play this right, this could be the best recovery trade of the year, and LDO is set to outperform some peers in the process.
LDO first needs to pare the selling pressure from bears at $2.20, where they have built a fortress around that historically pivotal level and the 55-day SMA that resides nearby. With the bullish performance setting the tone for this week, expect to see that level being torn down later on Tuesday and bulls heading for $2.60. The rally should continue into July with a few catalysts along the way that could lift LDO higher and head toward $3.37.
LDO/USD 4H-chart
A threat to the downside could come with another rejection at $2.20 and one of the tail risks in the US inflating again, such as the on-again-off-again banking turmoil or the debt ceiling negotiations. Expect then to see a leg lower with $2 doubtful to hold. Rather look for $1.85 and the 200-day SMA in between $2 and $1.85 as a circuit breaker to slow down any violent drops depending on the severity of the tail risk or catalyst.