The crypto market has been painted green today, with many cryptocurrencies trading at massive 24-hour gains. It appears that last week’s bears have given way to the bulls. But as analyst McGlone predicted, the February CPI data release will show the fate of most coins in March.
With cryptocurrencies enjoying notable gains, Lido Finance’s LDO emerged among the top-gaining coins with a 20% price increase in 24 hours. At press time, LDO is trading at $2.51, with a 72.27% increase in trading volume over the past 24 hours.
Lido DAO (LDO) Rebounds From Its Past Week’s Bearish Trend
The recent news of the collapse of crypto-friendly banks, Silicon Valley, and Signature banks left the crypto market with fear and uncertainty. The Fear and Greed Index crashed to 33, leaving Bitcoin and altcoins with massive price declines. As of March 12, LDO closed the day at $2.15 but later rose to $2.45 on March 13, a notable increase from the previous day’s price.
Lido Finance threaded a bearish trend over the past week following the announcement that MixBytes is dropping Lido. In the statement, the MixBytes team said it would quit developing and technically supporting Lido on Polkadot and Kusama liquid staking protocols. That was a huge setback for LDO, resulting in a massive decline in price.
After the announcement, many liquid Polkadot and Kusama liquid stakers withdrew from the Lido Finance protocol. The move negatively impacted the LDO price and Total Value Locked (TVL). Data from DeFilama shows that Lido’s TVL declined by 5.7% following MixBytes’ announcement.
But LDO has bounced back with a 20% price increase over the past 24 hours. LDO did not only witness a price increase over the past day, but its trading volume surged by 72.86%. It suggests the Lido community has recovered from the shock of MixBytes’ announcement.
Despite market conditions, the Lido network still pursues expansion. Lido recently announced its launch on Ethereum L2s with successfully wrapped staked Ethereum (wstETH) on Optimism and Arbitrum.
According to the Lido development team, the coming deployment target would be Polygon. These development steps would improve access to staked ETH while positively influencing LDO price.
LDO Price Outlook
LDO has consolidated on its gains today, trading closer to the $3 price level on the daily chart. Despite the price decline between March 8 and March 11, 2023, the bulls have rallied to increase the asset’s price again.
Lido DAO is still trading below its 50-day Simple Moving Average (SMA). However, the wick on today’s candle is breaking above the indicator. It implies that the buying pressure in the market is high and might translate to an uptrend.
The asset has remained above its 200-day SMA, a long-term bullish sentiment for LDO. The candlestick on March 12 formed a bullish engulfing pattern that could trigger the next bull run for Lido DAO.
Lido DAO’s support levels are $1.81, $1.94, and $2.19, with resistance levels at $2.57, $2.69, and $2.95. LDO will likely test the $2.57 resistance level before it experiences a price pullback in the coming weeks. However, a drop to the $2.19 support is still a distant possibility if the bears prevail.