The broader crypto market showed an impressive price rally mid-day, August 31. Cryptos such as Bitcoin and Ethereum have increased by 0.87% and 2.58%. BTC’s price is $20,319.03, while ETH has regained a hold on $1589.74. The top coins are now trading in the greens.
But the morning hours of August 31 didn’t sit well with the assets. Many cryptos lost their 24-hour price gain, including BTC and ETH. Bitcoin lost its hold on the $20K mark, while Ethereum followed with a 0.4% loss.
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Others, such as DOT, DOGE, SOL, and SHIB, lost 2.05%, 2.08%, 1.47%, and 2.21%. But the higher losers were AVAX and SNX, which dropped by 3.34% and 7.5%.
The Tides Have Turned For DAO
Lido DAO coins have spiked by over 11% in the past 24 hours. According to analysts, this price gain has made it the top profitable crypto asset. LDO gained support and climbed above its critical resistance level. Also, the Relative Strength Index for LDO on the chart shows that it entered the neutral zone.
These indicators show an imminent acceleration and price increase. Right now, LDO is fluctuating between $1.98 and $2. Also, its trading volume has spiked considerably. By that, there’s a high possibility of a continuing price rally.
One of the possible reasons for the push on LIDO price is the upcoming Merge. While many analysts already hint that the upgrade has been Priced In for Ethereum, the case might be different for Lido DAO.
The decentralized organization is among the top holders of Ethereum 2.0 staking contracts. So, as the network upgrades and becomes more scalable, the effect will resound on Lido.
The organization will become a top shareholder of Ethereum after the upgrade. This means it will have adequate voting power to participate in network activities. That’s why more people are buying into this opportunity by purchasing LDO tokens ahead of time.
LDO Journey in August 2022
One reason to celebrate the upward momentum in LDO is the poor performance that characterized its August price journey. After shocking its community with a 340% rally in mid-August, the token started a downward trend.
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The LDO price jump was linked to the Ethereum Merge event. As a major shareholder in Ethereum 2.0, the upgrade favored the decentralized organization. But the token couldn’t sustain the spike and continued losing until it fell below its 50-day moving average on August 26.
At that point, investors lost hope of a reversal until this latest price gain. Currently, the 24-hour gain has attracted more attention toward LDO. The community expects to see more spike in value as the Merge date approach.
Featured image from Pixabay and chart from TradingView.com