Lido price momentum accelerates; gets extremely overbought

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  • The price of Lido DAO has been in a strong bullish trend over the past few days.

  • It has become the largest DeFi protocol in the world.

  • Its net worth is more than $6.9 billion.

lido dao The price has performed well in 2023 as demand for liquid staking remains high. The LDO token reached a high of $2.68, which is the highest point since August last year. It has jumped more than 80% from this year’s low and 365% from its 2022 low.

Liquid staking grows in demand

Lido DAO is a leading blockchain platform that has evolved into the world’s largest DeFi protocol. Its total value locked (TVL) is over $6.5 billion, making it larger than MakerDAO, which has a TVL of over $6.4 billion. We wrote about this development Here,

For starters, Lido is a major player in a small but rapidly growing segment of the blockchain industry. It operates a Liquid staking platform for some of the leading blockchains such as Ethereum, Solana, Polkadot and Kusama.

For starters, liquid staking is a modified version of staking that is generally more flexible in nature. For Convolutional Staking, users are required to lock up their coins for a certain period of time, which is usually a month. Withdrawing funds during that period usually means users lose the rewards of their bets.

Liquid staking is more flexible as users can withdraw their staked funds at any time. This happens when users are given a staked token. in the matter of Ethereum, they are given Lido Staked ETH (stETH), which has a total market cap of over $4.4 billion. Lido Stacked Solana (stSOL) has a market capitalization of over $18 million.

The upcoming Shanghai upgrade on Ethereum’s network has led to an uptick in the price of Lido DAO. The upgrade will make it possible for people to withdraw their staked tokens to Ethereum. He has kept these coins at stake for a few months. Therefore, investors are expecting a high demand for Lido DAO.

lido dao price prediction

LDO Chart by TradingView

The daily chart shows that the price of LDO has been in a strong bullish trend over the past few weeks. In this period, it has managed to rise above the important resistance point of $1.8500, which was the highest point on November 4. It has moved above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved up. to a higher buyer level.

Hence, the coin is likely to rise in the coming weeks as buyers target the next key resistance level at $3. A drop below the key support point at $1.5 will invalidate the bullish view.

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