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- 1 The LDO crypto asset was in the parallel channel for the past year.
- 2 The CMP is at $3.131 with an intraday loss of 2.13%.
Lido DAO is a delegated autonomous organization that runs liquid staking protocols. It determines key parameters like fees, node operators, and oracles through the voting power of its governance token, LDO. The DAO accumulates service fees which it uses for research, development, liquidity mining incentives, and protocol upgrades.
What is the Purpose of Lido DAO?
Lido DAO is majorly utilized for staking ETH on Ethereum 2.0 in a liquid and delegated way. Users can put their ETH into Lido’s smart contract and get stETH (liquid staked ETH) in exchange.
stETH is a 1:1 representation of staked ETH and can be easily traded, transferred, and availed in other DeFi protocols meanwhile getting staking rewards. Lido DAO is governed by its community of stakeholders who advise and vote on changes to the protocol.
How Does LIDO Token Work?
The LDO token functions basically as the governance token for Lido DAO. Holders of LDO can vote on protocol parameters and control the Lido DAO treasury.
The voting weight of LDO is proportional to the amount of LDO a holder has. More LDO implies more decision-making power. Besides governance, LDO can also be staked to gain a part of protocol fees.
Lido DAO stands as a reasonable balance between full centralization and decentralization, allowing the creation of competitive products without full centralization and custody of the exchanges.
The DAO structure enables community-focused, socially-conscious decision-making and pays for the costs of developing and upgrading the protocol from the DAO token treasury.
Furthermore, Lido DAO utilizes an efficient mechanism, Easy Track, to help with routine and uncontroversial governance proposals.
Will Lido DAO Crypto Chart Produce a Steep Downtrend
The LDO crypto asset was in the parallel channel for the last year and it surged from $1 and reached $4 by the first week of January 2024. It has attained good performance in the last year as it surged by 57.48%, implying a stable upward direction in the long term.
However, the LDO crypto has displayed a sign of decline as the price fell after struggling on a critical level of around $4 on the chart. The LOD asset is revealing bearish signs and shows that it can sink to the lower levels.
Now, it looks like the LDO crypto is headed for a steep drop, as it meets the resistance level and falls. If the price fails to sustain the immediate support and slides below $3, then it could stretch further to the lower levels.
However, the LDO crypto is in an uptrend from the last three months approx and surged 115.50% in the span. If the buyers surge from the current support, then the price could aim for the upper levels back and could hit $4 as well.
The LDO crypto asset is displaying a falling tendency and bearishness on the chart, as it plunges below the 20-Day EMA level. Now, reliant on the seller’s surge, the price could fall beneath the bigger EMAs dynamic support.
The LDO crypto asset is exhibiting bearish weakness as MACD has given a bearish cross with histogram broadening and the RSI is below and has taken rejection from 14 SMA, implying that the asset is bearish and soon to enter negative territory and can sink further down.
Summary
LDO price highlights the bearish sentiments and perspectives regarding the crypto asset in the daily time frame. The Lido DAO price action highlights a bearish view at the time of publishing.
Moreover, the technical parameters of the Lido DAO price suggest the continuation of the downtrend over the daily time frame chart. The RSI, and EMAs are giving bearish signals.
Technical Levels
Support Levels: $3
Resistance Levels: $4
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
