The crypto market is still highly unpredictable and volatile in January 2023. The market generally recorded a 0.3% decrease in the last 24 hours. But as most of the assets falter, some tokens record exponential gains. LDO, the governance token of the Lido DAO network, has increased in value in the past week. The token is up by 62.83% in weekly gains and currently trading at $1.99, a 1.31% increase in 24 hours.
The Lido DAO project is a staking platform where users can stake their ETH tokens. The platform also offers DeFi lending services and requires no minimum deposits. With different financial services and the flexibility of its platform, this upsurge shows increased adoption by users for a variety of purposes.
Despite the uncertain times in the crypto space Lido DAO (LDO) has continued to perform well since the turn of the year. Some factors are behind this recent resurgence and will influence how long the bullish momentum will last.
Why Is Lido DAO (LIDO) On The Rise?
Some parameters are responsible for the price surge in Lido DAO. A Twitter user states that the Lido finance native token has soared nearly 60% in the last week. The user attributed this to Ethereum’s upcoming Shanghai fork. This update will enable users to withdraw their staked ETH tokens.
Secondly, BitForex announced the listing of LDO on the exchange. This listing has increased the project’s scope and is partly responsible for the price increase noted in the token.
However, Twitter user John Cook has expressed pessimism about Lido DAO’s newfound price momentum. In his tweet on January 8, he referred to the seven-day rise of the token as a pump-and-dump. He also alleged that the project was ripping off retail investors and spending more on marketing costs than engineering.
Despite his protests, the LDO token remains among the top gainers this week. The price surge has seen Lido DAO become the largest Decentralized Finance protocol in the world. The project has a total locked value above $6.9 billion.
Can The Bulls Sustain The Rally?
LDO token is currently in an uptrend on the chart, with the formation of simultaneous green candles. The support levels are $1.6647, $1.7561, and $1.8495. Its resistance levels are $2.03, $2.13, and $2.22.
LDO is currently trading above its 50-day and 200-day Simple Moving Averages. These two indicators are showing a buy signal at the moment. Therefore, it implies that the token’s short-term and long-term price movement is bullish.
The Relative Strength Index (RSI) indicator indicates a buy signal. With the oversold region below 30 and the overbought region above 70, the current RSI value of the token is 82.22. Traders will likely take long positions in the market.
The MACD (Moving Average Convergence/Divergence) is well above its signal line and shows divergence. The signal is also a buy but might be for the short term. LDO is still off its ATH (all-time high) value of $11.00. The token will likely continue on its ascent as more investors buy into the project.
If a digital asset’s price decreases by 50%, it will need to rally to 100% to return to its former value. This feat might be tasking for memes and altcoins to accomplish. Investors must realize that altcoins are more volatile than large-cap cryptocurrencies like Bitcoin.
Featured image from Pixabay and chart from TradingView.com
Source: https://newsbtc.com/news/lido-dao-ldo-token-outperforms/