As Ethereum’s liquid staking protocol, Lido Finance, unfurls the red carpet for its most significant platform update yet – the V2 launch – all eyes are on the LDO token.
Steered by the imminent launch, the token has experienced a significant uptick in its value, sending traders and investors alike into a tizzy of anticipation and speculation.
The question on everyone’s mind right now is – is this just the beginning of a monumental rally or are we nearing the zenith?
Let’s take a deeper dive into Lido’s potential future trajectory.
Unpacking the New Lido V2: Staking and Withdrawals
This past week marked a landmark moment for Lido Finance.
After a highly successful on-chain voting process, it was announced that the V2 update proposal had received the necessary approval. Scheduled for a May 15th launch, the V2 update brings with it two core features – the Staking Router and a new Withdrawal feature.
The Staking Router aims to democratize the ecosystem by allowing new node operators into the fold.
Thanks to its modular architectural design, the Staking Router offers an on-ramp for node operators ranging from Distributed Validator Technology (DVT), solo stakers, to Distributed Autonomous Organizations (DAOs).
This feature is expected to stimulate further decentralization in the Ethereum blockchain industry, a step in the right direction for the future of cryptocurrency.
https://t.co/GMrXGuLIdT pic.twitter.com/4wfk6zgJbM
— Lido (@LidoFinance) May 15, 2023
The second ground-breaking feature is the introduction of withdrawals.
A highly anticipated withdrawal feature is set to be a game changer for Lido, enabling stakers who hold stETH to access withdrawals at a 1:1 ratio.
This was a much-anticipated update, as it would further streamline the staking experience for Lido users.
With excitement surrounding the V2 update palpable, the Lido community is buzzing with optimism.
The question remains though – will this positive price action continue post the V2 launch?
With an update as significant as this, it’s natural to expect some volatility in the market.
The key will be to closely monitor the adoption and performance of the new features to gauge the impact on the token’s value.
Lido (LDO) Price Analysis
With excitement around Lido (LDO) V2 supercharging price action, LDO is currently trading at an impressive $2.16 (a 24 hour change of +2.28%).
The upside move comes following a challenging two months for Lido, which saw depressive chop amid the hype around the Ethereum Shapella upgrade.
Indeed, between February 28 and May 12, LDO suffered a -51% bleed-out.
But the launch of LDO V2 has ignited market interest in the leading staking platform, with LDO enjoying a +37% pump since May 12.
The resumption of upside price action has seen LDO reclaim key support from the converged MA20 and MA200 – which could now form the footing of a sensational rally.
As LDO struggles with ongoing resistance around $2.20 – LDO bulls could be facing a brief period of consolidation as the RSI has heated up quickly.
Now stood at 56, a minor overbought signal, this could indicate that LDO needs to take stock of support at this level before upside momentum can resume.
The MACD contrasts this view, with a bullish signal at 0.0451 indicating prices should push up.
Lido (LDO) Price Prediction
As LDO heads into top trendline resistant it will remain to be seen whether this +37% pump can break-out into a bigger rally.
Looking to the upside, LDO is targeting a higher support level at $2.65 (a possible + % move).
However, after months of chop – a slide down could be on the cards – this would see LDO fall to a lower support level at $2.00 (a – % move).
Despite this downside risk, LDO has an incredibly attractive Risk: Reward structure at 2.85 – marking a potentially lucrative entry for bullish investors.
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This article was written for Business 2 Community by Sam Cooling.
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