The Crypto market has entered a state of extreme volatility following the US CPI report. Bitcoin and Ethereum suffered the maximum pulling along with other altcoins.
Ethereum was enjoying a tremendous bullish price rally in the last week following the Merge anticipation. However, in the last 24 hours, it has lost almost 7% value entering the $1600 level.
Bitcoin is also in the bearish state, down by 10% over the past day, plunging below the $21,000 level. The global crypto market cap has also declined by 7.15%, standing at $996B.
In addition, Lido DAO, Ethereum's biggest staking service, has also declined by more than 40% in the last 30 days.
Lido DAO is a liquid staking solution for ETH by total value deposited. It basically enables users to participate in the running of Ethereum's upcoming proof-of-stake (PoS) chain in exchange for rewards.
Reportedly, Lido DAO had deposited over 4.14 million of the blockchain's native asset, Ether (ETH), into the Ethereum 2.0 smart contract on behalf of its users.
At the beginning of this year, Lido DAO's total staked amount was around 1.6 million ETH. This massive jump clearing reflects a growing demand for Lido DAO services ahead of Ethereum's much-awaited upgrade.
On August 3, Lido DAO (LDO) price edged higher due to the rising euphoria of Ethereum's redressal. It reached an intraday high of $2.40 a day after bottoming out locally at $1.84. The sharp upside reversal amounted to nearly 30% gains in a day.
However, in the last 30 days, Lido DAO (LDO) has lost this momentum and declined by more than 40%. The technical analysis also hints at more room for decline in a potential sell-the-news event, i.e., the Merge.
Lido DAO started to face extreme selling pressure as soon as LDO reached $3.10 on August 13. This downtrend proceeded to paint a descending triangle.
Descending triangles are bearish signals that hint at a more downside breakout. This triangle pattern offers a bearish outlook while indicating that the price will continue to follow a downward trend until the pattern completes itself.
Currently, LDO is testing the triangle's lower trendline area (~$1.79-$1.82) as support. The token might drop to $1.17 if it breaks below the support level. Precisely, a 35% drop from current price levels is imminent with higher trading volumes.
On the other hand, a possible rebound from the $1.79-$1.82 support area will push LDO to test the descending triangle's upper trendline at $2.10 as resistance.
If this happens, this bearish momentum will be completely invalid. Whereas a successful Merge launch could bring more users to Lido, boosting demand for LDO tokens.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)