Lido token (LDO), the utility and governance token for the Lido Decentralized Autonomous Organization (DAO) that controls Ethereum liquid staking protocol Lido, has seen significant upside volatility in the past few days. LDO, up around 14% in the last seven days, came within a whisker of its highest levels since August 2022 on Thursday after momentarily surpassing the $3.0 per token mark.
Lido token has since eased back to trade in the $2.60s, but technicians think the cryptocurrency remains in a near-term uptrend. That suggests a sustained break above $3.0 and the August 2022 highs at $3.10 in the near future is a strong possibility. Suppose the broader rise in cryptocurrency markets continues and speculation that the US might ban US-based centralized cryptocurrency firms from providing Ethereum staking services (like Coinbase) continues to swirl. In that case, LDO’s near-term prospects look good.
Coinbase CEO Brian Armstrong tweeted on Thursday that he heard rumors that the US Securities and Exchange Commission (SEC) might get rid of crypto staking in the US for retail customers. That triggered a surge in Lido token, with investors betting that a ban on Coinbase’s Ethereum staking service would see substantial ETH flows into decentralized liquid staking protocols like Lido.
Price Prediction – Where Next for LDO?
If Lido token can muster a sustained push to the north of resistance around $3.0, this could open the door to a swift rally towards the April 2022 highs in the $5.20 area. That would mark a slightly more than 100% or 2x rally from current levels. With already around 5.5x up from its June 2022 lows in the $0.40 per token area, such a rally in the short term shouldn’t be ruled out as impossible.
Once the April 2022 highs are hit, attention would then turn to the record highs printed in August 2021 in the $6.50 area. Of course, LDO isn’t going to be able to muster such a move in the absence of help from the broader market, but it may get just that. A wave of on-chain and technical indicators are increasingly pointing towards the fact that the bottom is in for Bitcoin and 2023, though likely to be characterized some further tightening from the US Federal Reserve, should be a much more favorable year for crypto on the macro front.
LDO Alternatives
If you’re looking for other high-potential crypto projects alongside LDO, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
