Markets
Lido DAO price increases amid market-wide declines
Lido DAO (I DO) has seen a notable price increase this week, outperforming both Bitcoin (Bitcoin) and Ethereum (ET). However, the token’s technical analysis shows growing 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 & Greed Index registering 55 (Greed).
The Relative Strength Index (RSI) stands at 33.47, suggesting a potential drop 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 over the past 24 hours, indicating a balance as the bulls attempt to defend the 1 level, $80.
Regarding the short-term price predictions for 2024, technical analysis estimates a range between $3.24 and $4.40, with a potential high 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 price of average exchange expected around $1,578.
Several recent developments have contributed to the recent price increase of Lido DAO. The integration of Kusama liquid staking on the Lido platform has 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 $16.08 billion, thanks to the rise of ETH staking and the growing popularity of liquid staking.
However, the broader market correction triggered widespread panic selling and fear among investors, 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 stands at $118 million, indicating significant trading activity for the cryptocurrency. Lido DAO is ranked 54th on CoinGecko.
High expectations
For Ethereum, key developments such as the closure of the SEC’s Ethereum 2.0 investigation and the upcoming Ethereum Dencun update have generated optimism among investors and analysts.
The SEC concluded his investigation into Ethereum 2.0 without filing charges. This result potentially opens the door to the approval of spot Ether ETFs, which analysts say could push Ethereum to new all-time highs. Some have a goal of $5,000.
ETHEREUM SURVIVES THE SEC.
Today we are pleased to announce a major victory for Ethereum developers, technology providers, and industry participants: the SEC’s Enforcement Division has notified us that it is closing its investigation into Ethereum 2.0.
This means that the SEC…
— Consensys (@Consensys) June 19, 2024
We remember in April how the SEC released a notice from Wells to ConsenSys, an Ethereum software development company, regarding potential enforcement actions related to its crypto wallet service, MetaMask, sparking debates over Ether’s classification as a security.
In response, ConsenSys submitted a cause against the SEC. The commission had no jurisdiction over Ether, the firm argued, citing a 2018 report designation of ETH as a commodity.
ConsenSys also highlighted the recent approval of Ethereum spot ETFs as evidence to support 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 underscoring the continued need for clear regulatory frameworks.
Despite recent price corrections across the board, ETH still sits well above the psychological $3,000 region, exchanging hands for $3,474 as of this writing.
Other Ethereum-related projects include the Lido DAO governance token I DOEthereum Name Service (ENS) and Creator (MKR), the fourth largest Ethereum DeFi protocol. Each project has posted decent earnings in recent weeks.
While the approval of Ethereum spot ETFs is pending, the SEC’s indication that it views ETH as a commodity rather than a security is key. This clarification is essential to foster the growth and adoption of cryptocurrencies by establishing a more predictable regulatory landscape.