Home CryptocurrencyAltcoin Sell ​​a rumor? Largest Ethereum Staker Merge Lido DAO Loses 40% in 30 Days

Sell ​​a rumor? Largest Ethereum Staker Merge Lido DAO Loses 40% in 30 Days

by SuperiorInvest

Lido DAO (LDO) is down more than 40% in the last 30 days with more room for downside in the coming days due to the potential selling news event, i.e. the Merger.

Lido DAO ether deposits will increase by 160% in 2022.

Lido DAO is The largest Ethereum betting servicewhich deposited more than 4.14 million of the native blockchain asset, Ether (ETH), into the Ethereum 2.0 smart contract on behalf of its users, according to the latest data.

The total amount of ETH 2.0 staked by the provider. Source: Glassnode

In comparison, Lido DAO’s total stake was around 1.6 million ETH at the beginning of this year. The boom reflects growing demand for Lido DAO services ahead of Ethereum’s planned transition from proof-of-work to proof-of-stake via merger on September 15.

LDO, the governance token in the Lido DAO ecosystem, also passed unprecedented rise in prices it has risen more than 350% in recent months after bottoming out at $0.39 in June.

Still, the token’s sharp correction last month raises the possibility of an extended downtrend as the pre-merger hype comes to an end. In addition, the technical setup also warns of a potential price decline.

The LDO indicates a reversal of the descending triangle

The last selling period in the Lido DAO market started after LDO peaked at $3.10 on August 13th. This downward trend has drawn a pattern that appears to be descending triangle.

Descending triangles forming above indicate bullish exhaustion. In theory, a descending triangle below the lower trendline could push the price down to a level equal in length to the maximum height of the triangle.

Related: Will Ethereum Merge Collapse or Crypto Market Revive? | Find out now at The Market Report

The LDO is now testing the lower triangle trendline area (~$1.79-$1.82) as support. The token could fall as low as $1.17 if it breaks below the support level, accompanied by an increase in trading volume. In other words, a 35% drop from current price levels.

LDO/USD daily price chart with descending triangle setup. Source: TradingView

Conversely, a bounce from the $1.79-182 support area could see the LDO test the upper trendline of the descending triangle at around $2.10 as resistance.

A decisive break above the upper trendline would also risk invalidating the bearish setup discussed above.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

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