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Lido DAO Surges by 12% and Now Aims at 25% Rally Continuation

Wed, 10/26/2022 - 10:08
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Arman Shirinyan
Biggest Ethereum holder on network seeing inflow of funds
Lido DAO Surges by 12% and Now Aims at 25% Rally Continuation
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Lido DAO's most recent price surge was fairly unexpected, considering its price performance in the last few months. However, Ethereum's most recent rally played in favor of Lido Finance, which remains the biggest validator on the network.

Thanks to the biggest ETH stake in the whole industry, LDO holders become beneficiaries of almost every major update on Ethereum and its positive price performance. The correlation between LDO and Ether still remains at an extremely high level, and the most recent rally is another confirmation of it.

LDO Chat
Source: TradingView

However, Lido should not be considered an asset separate from Ethereum, considering its current state in the market. Most investors either choose LDO as a way of being exposed to staked Ethereum or as a spot asset with more volatility.

However, the market analysis shows that Lido's volatility has not been any higher than Ethereum's, which makes exposure to Ether with the help of Lido almost pointless.

LDO technical analysis

Despite almost a complete replication of Ethereum's price performance, the difference in listing timings can provide additional insights for those who are willing to invest in LDO. According to the daily chart, the assets successfully broke through the local resistance level of the 50-day moving average in the same manner as Ethereum.

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However, the low trading volume suggests that Lido itself is not interesting to investors, and most of the buying power appeared because of the aforementioned correlation. In the long term, LDO is moving in a downtrend despite some success it had prior to the implementation of the Merge update on the Ethereum network.

In order to end the year-old downtrend, Lido has to gain a foothold above the 200-day MA resistance level, located 25% above the current price.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.