The cryptocurrency market continues highly unpredictable and volatile in January 2023. The market in general registered 0.3% decrease in the last 24 hours. But since most assets fail, some tokens record exponential gains. LDO, the governance token of the Lido DAO network, has risen in value in the past week. the token is up 62.83% in weekly earnings and is currently trading at $1.99, an increase of 1.31% 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 rally shows increased adoption by users for a variety of purposes.
Despite uncertain times in the crypto space, Lido DAO (LDO) has continued perform well since the turn of the year. A few factors are behind this recent rally and will influence the duration of the bullish momentum.
Why is Lido DAO (LIDO) on the rise?
Some parameters are responsible for the price increase in Lido DAO. A Twitter user state that Lido Finance’s native token has skyrocketed nearly 60% in the past week. The user attributed this to the upcoming Ethereum upgrade. shanghai fork. This update will allow users to withdraw their staked ETH tokens.
Second, BitForex Announced LDO’s listing on the stock market. This listing has increased the scope of the project and is partly responsible for the observed price increase in the token.
However, Twitter user John Cook has expressed his pessimism about the new Lido DAO price boost. In its cheep On Jan. 8, he referred to the token’s seven-day rise 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 their protests, the LDO token is still among the top gainers this week. The price increase has made Lido DAO the world’s largest decentralized finance protocol. The project has a full value locked above $6.9 billion.
Can the Bulls sustain the rally?
The LDO token is currently in a uptrend on the chart, with the formation of simultaneous green candles. 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 and 200 SMAs. These two indicators are showing a buy signal right now. Therefore, it implies that the short-term and long-term price movement of the token is bullish.
He 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 are likely to 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 it could be short-term. LDO is still off its ATH (all-time high) value of $11.00. The token is likely to continue its rise as more investors buy into the project.
If the price of a digital asset decreases by 50%, it will need to rise to 100% to return to its previous value. This feat could be a chore for memes and altcoins. Investors need to realize that altcoins are more volatile than large-cap cryptocurrencies like Bitcoin.
Featured image from Pixabay and graphic from TradingView.com
