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Lido DAO Price Drops 7% in 24 Hrs To $2.52 – Here Is Why LDO Remains Bullish

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Lido DAO Logo
Lido DAO Logo

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Lido DAO token (LDO) is trading in red at $2.57 after witnessing a significant rally in the past four days. The token is down 7.53% over the last 24 hours. However, the utility and governance token for the Lido Decentralized Autonomous Organization (DAO) that controls Ethereum liquid staking protocol Lido, is still up 27% over the last week and more than 35% over the last 30 days. 

This has led many analysts to believe that LDO’s upside is not over, at least for the short term. However, for the Lido DAO price to secure an uptrend, it must produce a confidential close above the $3.0 psychological level. It should be noted that the price was rejected from this level in August and went on to plummet 41% to $1.74. 

The price has again been suppressed under this supplier congestion area for the last 30 days. Several attempts to push LDO past this barrier have been unsuccessful. 

SEC Crypto Staking Ban To Fuel Lido DAO’s Recovery

There are rumors that the United States Securities Exchange Commission might ban US crypto firms from providing staking services. Coinbase CEO Brian Armstrong took to Twitter to weigh in on the news saying that was allowed to happen, “it would be a terrible path for the U.S.”

According to Armstrong, staking is an important crypto innovation that allows users to participate directly in running open crypto networks.” He also said:

Staking brings many positive improvements to the space, including scalability, increased security, and reduced carbon footprints.

The crypto executive called for clear rules that encourage new technologies to grow in the US instead of stifling them. If this doesn’t happen, companies will be encouraged to operate offshore “which is what happened with FTX”, he added. 

If the SEC goes ahead with its plans to ban Ethereum staking services in the US, it would lead to substantial Ether flows into decentralized staking protocols like Lido. In that case, LDO’s near-term prospects look promising.

Lido DAO Price Needs To Flip $3.0 Into Support

If the Lido DAO token bulls can produce a sustained northward breakout above the $3.0 barrier, it could open the way for a rapid move toward April 2022 highs above $5.20. This would represent a 103% ascent from the current price. With already 170% gains year-to-date, such a rally in the near term could be possible. 

LDO/USD Daily Chart

LIDO DAO price chart
TradingView Chart: LDO/USD

The LDO token was trading above the major moving averages. These were the 50-day Simple Moving Average (SMA), the 200-day SMA, and the 100-day SMA at $1.87, $1.69, and $1.5 respectively. These support areas provided breathing zones where the bulls could regroup in case of a turndown.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator were positioned in the positive region, adding credence to LIDO’s positive outlook. Note that the MACD had just sent a buy LDO signal. This happened on February 9 when the 12-day Exponential Moving average (EMA) crossed above the 26-day SMA, suggesting that the market favored the upside. 

On the downside, the Lido DAO price may turn down from the current levels toward the $1.99 support wall or to the moving averages below it. A drop lower could take LDO to revisit the $0.9 support floor, where the downside may be capped in the short term. 

Alternatives To LDO

Besides the LDO, investors should consider Meta Masters Guild, whose native token MEMAG is performing well in presale. The team behind MEMAG has already raised more than $3.45 million, with only a few hours left to the 7th and final stage

Visit Meta Masters Guild here to find out more about how to participate in the ongoing presale.

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