• Lido DAO (LDO) has been trading with an upside bias in recent days, thanks to a broader cryptocurrency market rally.
• Traders have attributed optimism about the upcoming Ethereum upgrade, called „Shanghai,“ as boosting LDO as it is a staked ETH liquidity provider.
• The fact that LDO was able to find strong support recently is a good sign for the crypto token’s near-term outlook.
The recent market rally has been a boon for many cryptocurrencies, with one of the biggest beneficiaries being Lido DAO (LDO). Lido is a staked ETH liquidity provider and its utility and governance token has been trading with an upside bias in recent days. This is largely attributed to the optimism surrounding the upcoming Ethereum upgrade, known as “Shanghai”.
Shanghai will, for the first time since ETH owners started staking their crypto back in 2020, allow staked ETH withdrawals. This increased flexibility is expected to attract more ETH owners to staking and related protocols such as Lido. This is reflected in the price of LDO, which is currently trading close to $2.20 per token, up close to 2.0% on the day. This is still below earlier session highs near $2.50 and last week’s highs just above $2.60, but still represents a 130% increase on the month.
Encouragingly, LDO was able to find strong support recently at the early November highs in the $1.85 area. This indicates that the cryptocurrency has strong bullish momentum and could be set for further gains in the near-term. This is further supported by the fact that LDO is trading well above all of its major moving averages.
Overall, the outlook for LDO appears to be positive, with the upcoming Ethereum upgrade likely to provide further upside potential. While there are still some risks associated with the cryptocurrency, given the current market conditions and the recent price action, it appears that LDO could be set to break out of its current range and move higher in the near future.
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