Lido DAO (LDO) Token Outperforms Market With 62% Weekly Gains

The crypto market continues to be highly unpredictable and volatile in January 2023. The market generally recorded a 0.3% decrease within the last 24 hours. But as a lot of the assets falter, some tokens record exponential gains. LDO, the governance token of the Lido DAO network, has increased in value up to now week. The token is up by 62.83% in weekly gains and currently trading at $1.99, a 1.31% increase in 24 hours.  

The Lido DAO project is a staking platform where users can stake their ETH tokens. The platform also offers DeFi lending services and requires no minimum deposits. With different financial services and the pliability of its platform, this upsurge shows increased adoption by users for quite a lot of purposes. 

Despite the uncertain times within the crypto space Lido DAO (LDO) has continued to perform well for the reason that turn of the yr. Some aspects are behind this recent resurgence and can influence how long the bullish momentum will last.

LDO’s price currently stands at $2.003 within the day by day chart. | Source: LDOUSD price chart from TradingView.com

Why Is Lido DAO (LIDO) On The Rise?

Some parameters are liable for the worth surge in Lido DAO. A Twitter user states that the Lido finance native token has soared nearly 60% within the last week. The user attributed this to Ethereum’s upcoming Shanghai fork. This update will enable users to withdraw their staked ETH tokens.

Secondly, BitForex announced the listing of LDO on the exchange. This listing has increased the project’s scope and is partly liable for the worth increase noted within the token. 

Nevertheless, Twitter user John Cook has expressed pessimism about Lido DAO’s newfound price momentum. In his tweet on January 8, he referred to the seven-day rise of the token as a pump-and-dump. He also alleged that the project was ripping off retail investors and spending more on marketing costs than engineering. 

Despite his protests, the LDO token stays among the many top gainers this week. The worth surge has seen Lido DAO turn out to be the most important Decentralized Finance protocol on this planet. The project has a total locked value above $6.9 billion.

Can The Bulls Sustain The Rally?

LDO token is currently in an uptrend on the chart, with the formation of simultaneous green candles. The support levels are $1.6647, $1.7561, and $1.8495. Its resistance levels are $2.03, $2.13, and $2.22. 

LDO is currently trading above its 50-day and 200-day Easy Moving Averages. These two indicators are showing a buy signal in the meanwhile. Due to this fact, it implies that the token’s short-term and long-term price movement is bullish.

The Relative Strength Index (RSI) indicator indicates a buy signal. With the oversold region below 30 and the overbought region above 70, the present RSI value of the token is 82.22. Traders will likely take long positions available in the market.

The MACD (Moving Average Convergence/Divergence) is well above its signal line and shows divergence. The signal can also be a buy but is likely to be for the short term. LDO continues to be off its ATH (all-time high) value of $11.00. The token will likely proceed on its ascent as more investors buy into the project.

If a digital asset’s price decreases by 50%, it would must rally to 100% to return to its former value. This feat is likely to be tasking for memes and altcoins to perform. Investors must realize that altcoins are more volatile than large-cap cryptocurrencies like Bitcoin.

Featured image from Pixabay and chart from TradingView.com

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