Lido DAO (LDO) experienced a significant price surge this week, surpassing both Bitcoin (BTC) and Ethereum (ETH). However, technical analysis indicates mounting bearish pressure.
Over the past 14 days, LDO’s price has risen by 11.6%. According to the Lido DAO price chart on Trading View, the token’s market sentiment score is 37%, with a Fear & Greed Index reading of 55 (Greed).
The Relative Strength Index (RSI) currently stands at 33.47, suggesting a potential dip below the $1.80 threshold into oversold territory. The longs/shorts ratio is balanced at 1.01, with 50.33% long positions and 49.67% short positions over the past 24 hours, indicating a tug-of-war around the $1.80 mark as bulls strive to hold ground.
Short-term projections for 2024 estimate a price range between $3.24 and $4.40, with a possible peak at $7.29. Looking further ahead, Lido DAO’s long-term outlook appears promising, with forecasts predicting substantial price potential by 2030, ranging from $1,496 to $1,810, and an average trading price around $1,578.
Several recent developments have contributed to Lido DAO’s surge. The integration of Kusama liquid staking on the Lido platform enabled KSM holders to stake their tokens and receive stKSM tokens, usable across various DeFi networks. Additionally, the Total Value Locked (TVL) on the Lido platform reached a record high of $16.08 billion, driven by increased staked ETH and the growing popularity of liquid staking.
However, amidst a broader market correction triggering widespread panic selling and investor fear across many cryptocurrencies, including LDO, challenges persist.
As of the latest update, Lido DAO is priced at $2.15, with a market capitalization of approximately $1.9 billion based on a circulating supply of 892.9 million tokens. The cryptocurrency’s 24-hour trading volume stands at $118 million, indicating robust trading activity. Lido DAO currently holds the 54th position on CoinGecko’s rankings.
In related developments, Ethereum has seen positive momentum following the SEC’s closure of its Ethereum 2.0 investigation without filing charges. This development potentially paves the way for the approval of Ether spot ETFs, which analysts believe could propel Ethereum to new all-time highs, with some forecasting targets as high as $5,000.
Earlier, the SEC had issued a Wells notice to ConsenSys, a prominent Ethereum software development firm, regarding potential enforcement actions related to its crypto wallet service, MetaMask. This move sparked debates over Ether’s classification as a security. In response, ConsenSys filed a lawsuit against the SEC, arguing the commission lacked jurisdiction over Ether, citing a 2018 designation of ETH as a commodity. ConsenSys highlighted the recent approval of spot Ethereum ETFs as supporting their position.
While uncertainties remain, the SEC’s indication that it views ETH as a commodity rather than a security is crucial for establishing a clearer regulatory framework, vital for the growth and adoption of cryptocurrencies.
Despite recent market corrections, ETH maintains a strong position above the $3,000 mark, currently trading at $3,474.
Additional Ethereum-related projects such as Lido DAO’s governance token LDO, Ethereum Name Service (ENS), and Maker (MKR) have also seen notable gains recently.
For further reading on related developments:
IRS hires ConsenSys, Binance US, and TaxBit executives to strengthen crypto supervision