Lido price made a strong pullback during the weekend after staging a strong recovery throughout the week. The LDO token is trading at $0.6980, which is slightly below the weekly high of $0.8790. That price was the highest that Lido had been since June 16th.
LDO is crawling back
Lido DAO is one of the biggest players in the Decentralized Finance (DeFi) industry. It serves an important role in that it lets investors earn interest on their staked assets. For example, ethereum holders can earn more returns on their assets by staking it in their holdings.
Lido DAO supports a number of smart contract platforms like Ethereum, Solana, Kusama, Polkadot, and Polygon. It was also a leading player in Terra before Terra USD lost its peg in May of this year. Now, the network is winding down on the platform.
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It is unclear why the Lido price has jumped sharply in the past few weeks. One possible reason is that investors are slowly moving back to its platform. According to Dune Analytics, the total value locked in Lido jumped by 17% this week. It currently sits at over $5.36 billion.
The jump in Lido’s TVL is mostly because cryptocurrency prices did relatively well this week, with Bitcoin soaring to $22,000. The other reason is that inflows to Lido DAO have been relatively strong recently. For example, Lido share of staked ETH rose by 31%.
Another reason why the LDO price has recovered is that stETH is slowly regaining its peg. This is a remarkable development considering that the coin lost its peg recently. It was also affected by the recent crash of Celsius and Three Arrows Capital.
Lido price prediction
Turning to the four-hour chart, we see that the Lido DAO price has done well in the past few weeks. Along the way, the coin managed to move above the important resistance point at $0.7345, which was the highest level since June 25th. It also rose to the highest point in more than three weeks.
The price remains above the Ichimoku cloud and the 25-period and 50-period moving averages. Therefore, the upward trend will likely continue in the coming days as bulls target the key resistance point at $0.9454. This view will be confirmed if Lido DAO manages to move above the weekly high of $0.8745.
The post Lido price prediction: Is it Safe to buy the LDO dip? appeared first on CoinJournal.
Ndasi Tata is a Bitcoin entrepreneur from Cameroon, who holds an M.Sc in Blockchain and Digital Currency from the University of Nicosia. He is an advocate of Bitcoin in Africa and uses various social media platforms to promote his ideas and ventures. Tata has a background in state journalism and has established himself as a significant figure in the Bitcoin community.