LDO Price Prediction – Where is the DAO Crypto Going on the Price Charts?
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LDO, the native token of LidoDAO, has displayed a consistently improving performance throughout February, closing the month at a 25% increase. The token is up 220% since the start of the year, and investors are now curious about the token’s future prospects.
In this article, we’ll take a look at the LDO token and offer predictions about the price targets it could hit in the future.
MakerDAO’s Co-founder Sold LDO for MKR Tokens
Rune Christensen, the co-founder of MakerDAO, recently sold his LDO positions and bought MKR tokens with those proceedings. Although, LDO tokens manage to outperform MKR tokens in several aspects.
Christensen sold a total of 18.86 million tokens for a price of $27 million DAI. On the other hand, he purchased 15,092 MKR tokens for $4.44 million DAI. Both these transactions have been termed crucial in determining their state moving forward.
This isn’t the first time the co-founder has sold his LDO positions. So far, he has sold his LDO positions a total of five times, of which there was a consistent price drop for the token during the first three times he made the sale. The next two sell-offs, however, didn’t impact the price of the token much as LDO prices surged following the sale.
Although these recent sales haven’t had much impact on the token’s price by itself, it could very well start a FUD (fear, uncertainty and doubt) among the current holders of LDO, which could trigger another collective sell-off.
MKR, on the other hand, benefits from these transactions, giving optimism to MKR holders. Thus, positively impacting its price. The market cap of the token, however, has remained below that of LDO, despite a large number of recent purchases.
Both these tokens have performed quite well since the start of the year, but LDO has so far managed to outcompete MKR by a huge margin, serving as a better investment option for investors.
A high network growth, which suggests the growing appeal of LDO to new addresses, and a high velocity that implies increased activity around the token have been attributed to be the reason for its outstanding performance. As for what the token is all about; here’s a brief look.
What Is LidoDAO?
LidoDAO is a decentralized staking protocol that issues derivatives to traders that they can stake on DeFi protocols such as Yearn, Curve and Marker. And thus improve the liquidity across the crypto market.
It is a liquid staking solution that shares support for several layer-1 and layer-2 solutions and is secured by Ethreum’s Proof-of-Stake consensus mechanism.
The problem with most other platforms similar to LidoDAO is that once a user stakes their assets in a DeFi protocol, they cannot reassess their tokens until the staking period is over, which can prevent users from accessing platforms with better returns.
LidoDAO allows custodial staking which enables users to stake their locked crypto into other protocols, which gives them better return opportunities and encourages more participation across users.
LidaDAO is built as a decentralized autonomous organization(DAO), so there isn’t any organizational hierarchy present in the project, and the community has complete authority over the decision-making process of the protocol. Every user will have governance rights to the platform, in proportion to the tokens they are holding.
LDO is the governance token of the ecosystem that will be used by community members to vote on issues such as the development of the DAO, future initiatives to undertake and discuss proposals to make changes to the DAO.
The protocol already has the most staked ETH token among its competitors, which makes a good argument for considering LDO as an investment option. LDO’s ability to make changes to the platform, without affecting other Features makes it a great candidate for investment.
LDO Technical Analysis & Price Action
LDO’s price broke out of the narrow range consolidation zone with a massive bullish candle at the start of the year, continuing to form upward momentum supplemented by higher high candles. By the end of January, the token faced some resistance near the supply zone and went back towards its 50-day estimated moving average.
Soon after, the bulls kicked in as LDO’s trading volume surged in addition to the formation of a golden cross by the token’s 50-day & 200-day EMAs. Subsequent price drops were taken as buying opportunities by investors.
LDO price has been suggested to stay bullish, with regular corrections. Suggesting traders should only consider long positions while the price remains well above $2.6. The next objective for buyers is to reach the next resistance located at $3.49, and a break above this level could further enhance the bullish momentum.
Furthermore, the bullish movement could continue towards the next resistance located at $3.87, and then potentially to $3.98 USDT. It’s important to note that while this pattern continues, traders should remain vigilant for potential bullish excesses that may lead to minor corrections in the very short term.
LDO Price Prediction
Price predictions offer an insight into where a project could land over a specific period of time, but shouldn’t be taken at face value. Or solely used to make investment decisions. In our Analysis of the LDO token, we estimated a few targets the token could reach over the next few years.
While the token has maintained quite a bullish trajectory over the last two months, it could be heading toward a substantial correction in March. Investors can expect the token to bottom as low as $2.28. On the other hand, if the token is caught between a bullish market-wide pull, it could continue its bullish momentum, heading towards the next resistance.
In 2023, LDO isn’t expected to perform any dramatically and could reach a high of $4 by the end of the year. Investors can expect the token to maintain an average price of $3.34, without disregarding the changes of the token bottoming at $2.67.
On a longer timescale, the token has the potential to cross the $5 level by 2025. The highest price for the token is projected at $6.41, the lowest at $4.36 while maintaining an average of $5.13 throughout 2025.
Our predictions are meant for educational purposes, and investors should do their own due diligence before investing in a token.
LDO Alternatives
LDO has great fundamentals, and these are partly the reason why the LDO price has performed as well as it does now. There are other DAO crypto projects with the same fundamentals that you must check out as well.
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