LDO USDT WCA - Ascending Triangle Experiment Exchange: Binance
Project: Lido DAO
Ticker: LDO
Sector: Cryptocurrency
Introduction:
Today, we will be conducting a technical analysis of the Lido DAO/USDT on the Binance exchange on a weekly scale chart. This analysis is particularly intriguing as the pattern formation we're observing typically occurs during reversal or continuation stages in a more mature market. However, Lido DAO is a new entrant in the market, turning this analysis into a compelling experiment.
Pattern Analysis:
The key pattern formation observed in Lido DAO is an Ascending Triangle. The upper horizontal boundary of this triangle is at $3.125 and has been touched thrice. Similarly, the lower, upward-sloping boundary also has three touchpoints.
Usually, we would use the 200 EMA to identify the market environment. However, due to the novelty of the chart, we will need to adapt our approach. With the chart and pattern being 378 days old, I have calculated a makeshift EMA as follows: 378 days -> 54 weeks -> 54/4 -> 13.5 -> 14. This yields the 14 EMA. At present, the 14 EMA doesn't indicate a bullish environment, underlining the importance of not jumping into trades prematurely.
Projection:
Despite the current lack of a bullish environment, we can still provide a price target for those holding Lido DAO. Should the price break above the upper boundary, the price target would be $5.55, representing a potential increase of 77%.
Conclusion:
While Lido DAO is currently a watchlist candidate, it's crucial to be patient and wait for more bullish signals before making any trading decisions. As always, this analysis should be considered as part of a comprehensive trading strategy, with adequate risk management measures in place.
Keep a keen eye on this experimental chart, and happy trading!
Best Regards,
Karim Subhieh
