Lido DAO (LDO) is down more than 40% in the last 30 days.
Lido DAO Ether Deposit Up 160% in 2022
Lido DAO is Ethereum’s largest staking service, with more than 4.14 million blockchain-native assets Ether (ETH) entered into Ethereum 2.0 smart contracts on behalf of its users.
In comparison, Lido Dao’s total stake was around 1.6 million ETH earlier this year. In the year The September 15th merger shows growing demand for LidoDao’s services ahead of Ethereum’s planned transition from proof-of-work to staking.
LDO, the governing token in the Lido DAO ecosystem, has experienced an unprecedented price rally in recent months, up more than 350% since hitting $0.39 in June.
Still, the token’s sharp correction last month raises the possibility of an extended decline as its pre-merger rally nears its end. In addition, technical setup informs you about potential price reductions.
LDO gives a downward triangle reversal signal
The latest selling period in the Lido DAO market started after LDO peaked at $3.10 on August 13th. This downtrend looks like a descending triangle.
Descending triangles forming above indicate bullish weakness. In theory, a triangle breaking below the lower trend line – the price can fall to the level with a length equal to the height of the higher triangle.
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LDO will now test the lower trendline area of the triangle (~$1.79-$1.82) as support. The token may drop to $1.17 if it breaks below the support level along with increased trading volume. In other words, 35% off current price levels.
Conversely, a resurgence of the $1.79-182 support area could test the LDO descending triangle upper line around $2.10 as resistance.
Also, a critical breakout above the upper trend line can invalidate the bear setup discussed above.
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