- Lido DAO token has formed a head and shoulders pattern on the daily chart.
- The biggest event this week will be Ethereum’s Shapella upgrade.
Lido DAO token attempted to bounce back on Monday as traders braced for an important week in the liquid staking industry. The LDO token was trading at $2.40 on Monday, which was a few points above the weekend low of $2.29.
Ethereum Shapella upgrade
The biggest crypto news this week will be on the upcoming Shapella update. As I wrote here, this upgrade will make it possible for people to withdraw their staked Ethereum coins. Data shows that over $30 billion of all Ethereum has been staked, meaning that users cannot withdraw these funds for now.
The withdrawal proces will start in the next two days when Ethereum activates the Shanghai, also known as Shapella. Analysts have a mixed feeling about this upgrade and the impact on the crypto industry. Most of them believe that ETH and other related coins will either dip or experience substantial volatility
Lido DAO is a major player in Ethereum staking industry since it operates the biggest liquid staking platform in the world. Liquid staking is an important industry that simplifies how people stake and access their funds. Lido has over $11 billion in Ethereum, which earns about 11% in APY.
In real staking, people are required to bond their coins for a certain duration, which is typically one month. Liquid staking makes it possible for users to withdraw their funds without losing their returns. Therefore, stakers in Lido will have access to their tokens after the Shapella upgrade. However, in a recent note, they said that the earliest these users will have access to their coins will be in May.
Therefore, as a decentralized staking platform, analysts believe that Lido will continue doing well in the long term as American regulators crack down on centralized exchanges like Coinbase and Kraken. In a statement, Ilya Volkov, the founder of YouHodler said:
“Centralized exchanges are no longer able to offer staking services in the U.S. So, ETH will be withdrawn from these exchanges and staked elsewhere (e.g decentralized staking services). At the moment, the SEC cannot prevent users from staking ETH tokens via an individual note or via decentralized staking services.”
Lido DAO price forecast
The daily chart shows that the LDO price has moved sideways in the past few days. As a result, the token is consolidating at the 25-day and 50-day moving averages. It has also moved slightly above the 38.2% Fibonacci Retracement level. It is also above the ascending trendline shown in black.
Lido has also formed what looks like a head and shoulders pattern, which is usually a bearish sign. Therefore, there is a likelihood that the token will soon have a bearish breakout as sellers target the key support at $2.
