The Lido DAO token price failed to break a trendline mark and encountered a significant rejection overnight. The Securities and Exchange Commission (SEC) has leveled accusations against the MetaMask officer of Lido DAO regarding the staking feature. An analysis of the charts revealed a descending triangle pattern.
The Lido DAO (LDO) token faced scrutiny from the SEC due to allegations against its MetaMask officer concerning the staking feature. The SEC claims that Consensys executed the sale of Staked tokens through unregistered transactions on the MetaMask Stake platform. This news triggered a sharp selloff, resulting in a more than 16% price drop overnight.
Despite a recent price recovery, the token struggled to overcome multiple obstacles in one move. Notably, around the $2 mark, a downward-sloping trendline and clusters of exponential moving averages posed formidable challenges. Bulls found it difficult to pass through these barriers, leading to a sharp selloff with high volumes.
The Lido DAO token underwent consistent retracement and may not face further decline shortly. It recently bounced back from the $1.50 demand zone, forming a double bottom.
Concurrently, the LDO token slipped below crucial EMA support levels, indicating a negative outlook for upcoming sessions. The token's previous five-day low of $2 suggests a bearish trend.
At present, the Lido DAO (LDO) token is trading at $1.93, experiencing a 13.36% intraday drop. The charts show a neutral stance with a monthly return ratio of -14.90% and a 15.20% yearly return, indicating a temporary retracement.
The LDO/BTC pair stands at 0.0000324 BTC, with a market cap of $1.76 billion. Analysts maintain a neutral outlook, predicting potential volatile movements for the LDO price, which might retest the $2 level soon.
The Lido DAO token experienced a sharp drop of over 16% overnight, marked by consecutive doji candlesticks and a failure to gain momentum near the 200-day EMA mark. The SEC allegations in the recent session fueled negative sentiments, resulting in a substantial price decline within hours.
Furthermore, the token broke below the $2 threshold, indicating a bearish trend. Continuous lower lows were observed over the past weeks, leading to a correction of over 35% in the last two months. The RSI curve and MACD indicator also reflect bearish signals.
Failing to surpass the 38.2% Fibonacci retracement level, the LDO token faced rejection. Weighted sentiment data plummeted by over 43%, signaling a negative sentiment, while price volatility surged by 320%, indicating intense selling pressure.
The LDO token is currently at immediate support levels of $1.70 and $1.30, with resistance levels at around $2.40 and $2.80. Despite the recent decline, the token has several support levels near $1.50, suggesting limited downside potential.
This article serves as an informational piece and does not offer financial or investment advice. Readers are encouraged to conduct their research before making any financial decisions.
