Lido price momentum accelerates; gets extremely overbought
Lido DAO price has been in a strong bullish trend in the past few days.
It has become the biggest DeFi protocol in the world.
It has a total value locked of more than $6.9 billion.
Lido DAO price has done well in 2023 as demand for liquid staking remained high. The LDO token soared to a high of $2.68, the highest point since August last year. It has jumped by more than 80% from the lowest point this year and by 365% from the lowest point in 2022.
Liquid staking demand rises
Lido DAO is a leading blockchain platform that has evolved into the biggest DeFi protocol in the world. It has a total value locked (TVL) of more than $6.5 billion, making it bigger 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 fast-growing part of the blockchain industry. It operates a liquid staking platform for some of the leading blockchains like Ethereum, Solana, Polkadot, and Kusama.
For starters, liquid staking is a modified version of staking that is usually more flexible in nature. For convectional staking, users need to lock their coins for a certain period, which is usually a month. Withdrawing funds in that period usually means that the user will lose their staking rewards.
Liquid staking is more flexible since users can withdraw their staked funds at any time. This happens since the users are given a staked token. In the case of Ethereum, they are given the Lido Staked ETH (stETH), which has a total market cap of over $4.4 billion. Lido Staked Solana (stSOL) has a market cap of over $18 million.
Lido DAO price has rallied because of the upcoming Shanghai upgrade on Ethereum’s network. The upgrade will make it possible for people to withdraw their staked tokens in Ethereum. They have staked these coins for a few months. Therefore, investors expect that Lido DAO will have more demand.
Lido DAO price prediction
LDO chart by TradingView
The daily chart shows that the LDO price has been in a strong bullish trend in the past few weeks. In this period, it has managed to move above the important resistance point at $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 to the overbought level.
Therefore, the coin will likely continue rising 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.