Lido DAO Surges 27% in 7 Days: Is LDO Still Undervalued?

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Lido DAO (LDO) has captured market attention with a strong price rebound, rising 27% over the past week and gaining 10.06% in just 24 hours. Trading at $2.14 at the time of writing, LDO is showing renewed momentum amid growing investor confidence and bullish technical patterns. While still far from its all-time high of $18.62—representing an 88.45% drop—many analysts believe the current market dynamics suggest LDO may be undervalued and poised for further upside.

With increasing on-chain activity, rising adoption, and a shift in market sentiment, Lido DAO is emerging as a key player in the liquid staking ecosystem. This article explores the technical indicators, market sentiment, and network fundamentals driving LDO’s recent rally—and whether it has room to grow.

Technical Breakout: Bullish Triangle Pattern Confirmed

One of the most compelling signs of a potential rally comes from technical analysis. Lido DAO has recently broken out of a bullish triangle pattern on the daily chart—a formation often associated with continuation of an upward trend after consolidation.

👉 Discover how breakout patterns can signal major price moves in crypto

A bullish triangle forms when price action narrows between converging support and resistance lines, indicating decreasing volatility before a decisive move. In LDO’s case, the breakout was accompanied by rising volume, reinforcing the strength of buyer momentum.

According to market analyst Kartha, this breakout could pave the way for a 60–80% rally in the medium term. If that projection holds, LDO could reach between $3.39 and $3.82, marking a significant recovery from current levels.

Moreover, the +DI (Positive Directional Indicator) in the Average Directional Index (ADX) has surged to 27.36, up from two weeks ago, while ADX itself has declined. This combination signals that upward momentum is strengthening, even as overall trend intensity stabilizes—typically a healthy sign during early-stage rallies.

Such technical formations don’t guarantee future performance, but they do reflect growing market participation and shifting sentiment from neutral to bullish.

On-Chain Metrics Signal Growing Adoption

Beyond charts and patterns, fundamental on-chain data supports the idea that Lido DAO is gaining traction.

Rising Active Addresses Despite Price Dip

Data shows a positive price divergence in Daily Active Addresses (DAA)—meaning more users are interacting with the Lido network even though the token price remains relatively low. This influx of new addresses suggests growing confidence among retail and institutional participants who view LDO as undervalued.

When user activity increases independently of price, it often precedes sustained price appreciation. It reflects real utility and adoption rather than speculative trading alone.

Declining NVT Ratio Hints at Undervaluation

The Network Value to Transactions (NVT) ratio—often described as the "P/E ratio of crypto"—has been falling for LDO. A declining NVT indicates that transaction volume is growing faster than market capitalization, which may imply the network is underpriced relative to its usage.

In simpler terms: people are using Lido more, but the token hasn’t yet caught up in value. This disconnect often corrects itself over time through price increases.

These metrics collectively point toward strong underlying demand, suggesting that current prices may not fully reflect Lido’s on-chain economic activity.

Market Sentiment Turns Bullish

Investor positioning also reflects growing optimism. The long-to-short ratio on major derivatives platforms stands at 1.50, with 59.94% of traders holding long positions versus 40.06% short. While extreme skew can sometimes signal over-leverage, this level indicates healthy bullish sentiment without excessive risk.

Additionally, funding rates remain stable, reducing the likelihood of a short squeeze or mass liquidation event that could trigger sharp volatility.

Market structure now favors buyers, especially if LDO holds above key support levels around $1.92. Should downside pressure emerge, that zone could act as a strong floor before another attempt at higher resistance.

Conversely, immediate resistance sits at $2.50**, with a more significant barrier at **$2.80. A sustained close above these levels would likely attract additional institutional interest and reinforce the bullish narrative.

What Is Lido DAO? Understanding the Core Value

Lido DAO operates one of the largest liquid staking protocols in the crypto space, primarily for Ethereum (stETH) and other Proof-of-Stake blockchains. It allows users to stake their assets without locking them up, receiving staked derivatives (like stETH) in return that can be used across DeFi applications.

This innovation solves a critical problem: liquidity during staking. Traditional staking locks funds for extended periods, but Lido enables yield generation while maintaining flexibility.

Key advantages include:

As Ethereum continues to evolve post-Merge, demand for efficient staking solutions like Lido is expected to grow—especially with upcoming protocol upgrades improving scalability and usability.

👉 Learn how liquid staking is reshaping DeFi returns

Core Keywords for SEO Optimization

To align with search intent and improve discoverability, here are the core keywords naturally integrated throughout this article:

These terms reflect common queries from users researching Lido’s performance, investment potential, and role in decentralized finance.

Frequently Asked Questions (FAQ)

Is Lido DAO a good investment in 2025?

While past performance doesn’t guarantee future results, Lido DAO presents compelling fundamentals. Its leadership in liquid staking, growing on-chain activity, and undervaluation relative to usage make it a strong contender for long-term portfolios—especially as Ethereum adoption expands.

What factors could drive LDO’s price higher?

Key catalysts include broader crypto market recovery, increased ETH staking demand, protocol upgrades, exchange listings, and rising DeFi integration. Positive technical breakouts and sustained bullish sentiment also contribute to upward momentum.

How high can LDO go if the bullish forecast is correct?

Analysts project a potential 60–80% increase, placing LDO between $3.39 and $3.82 in the medium term. While this is far below its all-time high, it represents meaningful upside from current levels and could set the stage for further growth.

Is LDO still undervalued compared to its utility?

Yes. Metrics like declining NVT ratio and rising active addresses suggest that LDO’s market cap hasn’t kept pace with its network usage. This misalignment often corrects over time through price appreciation.

Where can I buy LDO safely?

LDO is available on major cryptocurrency exchanges with strong security and liquidity. Always conduct due diligence and consider using platforms with robust regulatory compliance and insurance coverage.

👉 Explore secure ways to access top DeFi tokens like LDO

Final Outlook: Can LDO Sustain the Momentum?

Lido DAO’s recent 27% weekly surge reflects more than just short-term speculation—it signals growing recognition of its foundational role in decentralized finance. With a confirmed technical breakout, strengthening on-chain metrics, and improving market sentiment, LDO appears well-positioned for continued growth.

While challenges remain—including competition from other staking protocols and broader macroeconomic conditions—the current trajectory suggests that LDO may indeed be undervalued relative to its utility and adoption.

For investors monitoring DeFi trends and liquid staking innovation, Lido DAO offers both strategic exposure and long-term potential. As network usage grows and market cycles turn bullish, tokens like LDO could play a central role in shaping the next phase of crypto finance.

As always, conduct thorough research and consider risk management before investing. But one thing is clear: Lido DAO is back in the spotlight—and it’s bringing momentum with it.