Lido DAO price rises amid market-wide declines

Read DAO (I MAKE) has seen a notable price increase this week, outperforming both Bitcoin (Bitcoin) and Ethereum (ETH). However, technical analysis of the token shows increasing bearish pressure.

LDO price has increased by 11.6% in the last 14 days.

If the Lido DAO price chart on Trading View is anything to go by, the token has a market sentiment rating of 37% and a fear and greed index registering 55 (greed).

The Relative Strength Index (RSI) is at 33.47, suggesting a potential slowdown below the $1.80 mark into oversold territory. The long/short ratio is currently at 1.01, with 50.33% long positions and 49.67% short positions in the last 24 hours, indicating a balance as bulls attempt to defend the US$ level 1.80.

Regarding short-term price predictions for 2024, technical analysis estimates a range between $3.24 – $4.40, with a potential upside of $7.29.

Looking ahead, the long-term outlook for Lido DAO appears optimistic, with projections suggesting significant price potential through 2030. Price expectations range from a low of $1,496 to a high of $1,810, with a predicted average trading price around $1,578.

Several recent developments have contributed to the recent Lido DAO price surge. The integration of Kusama net staking on the Lido platform allowed KSM holders to stake their tokens and receive stKSM tokens, which can be used across various DeFi networks.

Additionally, Total Value Locked (TVL) on the Lido platform reached a record high of $16.08 billion, driven by rising ETH staked and the growing popularity of net staking.

However, the broader market correction triggered widespread panic selling and investor fear, impacting many cryptocurrencies, including LDO.

At the time of writing, Lido DAO is priced at $2.15. LDO’s current market capitalization is approximately $1.9 billion, based on a circulating supply of 892.9 million tokens.

The 24-hour trading volume is $118 million, indicating significant trading activity for the cryptocurrency. Lido DAO is ranked 54th on CoinGecko.

High expectations

For Ethereum, important developments such as the closure of the Ethereum 2.0 investigation by the SEC and the upcoming Ethereum Dencun upgrade have generated optimism among investors and analysts.

The second concluded its investigation into Ethereum 2.0 without bringing charges. This result potentially opens the door to the approval of Ether spot ETFs, which analysts believe could propel Ethereum to new all-time highs. Some predict a goal of $5,000.

Remember in April how the SEC published a warning from Wells to ConsenSys, an Ethereum software development company, about possible enforcement actions related to its crypto wallet service, MetaMask, sparking debate over Ether’s classification as security.

In response, ConsenSys presented a lawsuit against the SEC. The commission had no jurisdiction over Ether, the company argued, citing a 2018 report designation of ETH as a commodity.

ConsenSys also highlighted the recent approval of spot Ethereum ETFs as evidence supporting its position.

The SEC’s decision to close the investigation does not exempt Consensys from future scrutiny, raising uncertainty for other cryptocurrencies with similar structures and emphasizing the continued need for clear regulatory frameworks.

Despite recent price corrections across the board, ETH is still well above the psychological $3K region, exchanging for $3,474 at press time.

Other Ethereum-related projects include the Lido DAO governance token I MAKEEthereum Name Service (ENS) and Creator (MKR), the fourth largest Ethereum DeFi protocol. Each project has recorded decent gains over the past few weeks.

While the approval of spot Ethereum ETFs are pending, the SEC’s indication that it views ETH as a commodity and not a security is key. This clarification is essential to promote the growth and adoption of cryptocurrencies, establishing a more predictable regulatory landscape.

Source