LidoDAO price could rally 10%, three on-chain metrics suggest

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• LidoDAO price likely to trigger a 10% gain as part of recovery bounce.
• LDO on-chain metrics are forecast a bullish outlook in the near future. 
• Breaching the range low at $3.02 will invalidate the bullish thesis. 

LidoDAO (LDO) price currently auctions at $3.14, hinting at a potential bounce that could propel it by 10%. On-chain metrics for LDO are also showing signs that add credence to this bullish outlook.

Read more: Lido DAO price aims for 88% rally as it retests 21-month-old resistance barrier

LidoDAO on-chain metrics flip bullish

LidoDAO price could break from its consolidation according to three on-chain metrics: 

1. Network Growth (NG)
2. Volume
3. Whale Transaction Count (WTC)
4. Social Dominance

LidoDAO saw its Network Growth decline from a peak of 304 to 50 between November 9, 2023 and December 16, 2023. This slump indicates that new capital is moving out. But after forming a stable bottom on December 16, this indicator continued to set up higher highs. The trend reversal is a clear indication of new capital flowing in, aka investors are interested in LDO again.

LDO Network Growth

LidoDAO price is hovering inside a range and is planning a comeback as sidelined buyers are stepping in. This speculation can be confirmed by looking at the continuous uptick in volume and WTC since December 22, 2023. 

WTC metric tracks the transactions worth $100,000 or more and serves as a proxy of their interests. If WTC spikes after a rally, it is considered bearish, as these whales could be looking to book profits. On the contrary, if WTC sees an uptick after the underlying asset crashes, it could indicate that these investors are interested in the altcoin. 

Additionally, the WTC metric spiked when the LDO price dropped 16% between January 5 and 6, which shows these whales are buying the dip. The increase in volume adds credence to the bullish outlook. 

LDO Volume, Whale Transaction Count

The consistent uptick in social dominance is another supporting factor to the bullish thesis, which shows that investors are actively talking about LidoDAO on social media platforms. 

LDO Social Dominance 

LDO price hints at more upside

The technical outlook for LidoDAO shows that it is trading at $3.14, inside a range extending from $3.02 to $3.61. LDO price attempts to move higher but is faced with a temporary resistance level at $3.15, which needs to be overcome for further ascent. 

If successful, LidoDAO price could tag the range’s midpoint at $3.31, following which is the $3.41 hurdle. 

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both showing a steady increase in bullish momentum, adding further proof of a potential recovery rally.

LDO/USDT 1-hour chart

On the other hand, if LidoDAO price breaches the range low without a quick recovery, it will create a lower low and invalidate the bullish thesis. In such a case, LDO could slide nearly 2% and tag the next key support at $2.96.