Lido DAO (LDO) Price Rises Above $1
Lido DAO (LDO) is trading above $1.00 as of Wednesday. The token belongs to the Ethereum-based liquid staking protocol. LDO’s price rise comes amid high volatility in the crypto market. Positive news about the Lido V3 final testnet launch supports this growth.
Lido V3 Testnet Launch Boosts Interest
Lido DAO launched the Lido V3 Testnet-3 on Monday. This is the last testnet phase before the mainnet release. The update upgrades Lido Core contracts on the Hoodi testnet. It also adds support for stVaults.
StVaults, or staking vaults, is a new staking protocol. It offers more flexibility and customization on the Ethereum mainnet. Users can adjust fee structures, pick Node Operators, and set up validators. This suits both individual and institutional needs.
The new protocol improves Lido’s staking system. It builds on the existing Lido Core. Interest in LDO grew after last week’s flash crash. During the crash, the futures Open Interest-weighted funding rate turned very negative. Many traders faced losses and liquidations.
Data from CoinGlass shows the LDO funding rate has recovered to 0.0050%. This positive change means traders are opening more long positions. They expect LDO to hold above the $1.00 support level soon.
Technical Analysis: LDO Bulls Eye Breakout
Lido DAO stays above $1.00 after crashing to $0.23 last Friday. The Relative Strength Index (RSI) on the daily chart is rising and now stands at 45. This shows growing bullish momentum after near oversold levels.
The Moving Average Convergence Divergence (MACD) still shows a sell signal. However, a buy signal may appear if the blue MACD line crosses above the red line. This could encourage traders to take more risk.
A daily close above $1.00 would confirm a bullish trend. But resistance near $1.12, formed by the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), might delay a breakout. This could lead to some profit-taking.
LDO is also below a descending trendline. Breaking this line is needed for a strong upward move. If LDO falls below $1.00, it may lose recent gains. Key support levels to watch are $0.77 and $0.61, tested in recent weeks.
