Lido DAO

Former LDO holder files class-action lawsuit against Lido DAO for crypto losses

The investor claimed that 64% of LDO tokens are controlled by just a few venture capital firms, preventing ordinary investors from having any control over decisions.

An LDO holder initiated a class-action lawsuit against the governing body for liquid staking protocol Lido, according to a complaint filed in a San Francisco United States District Court on Dec. 17. The lawsuit alleges that Lido’s LDO token is an unregistered security and that the Lido decentralized autonomous organization (Lido DAO) is liable for plaintiffs’ losses from the token’s price decline.

Lido is a liquid staking protocol that allows users to delegate their Ether (ETH) to a network of validators and earn staking rewards while also holding a derivative token called stETH that can be used in other applications. It is governed by holders of LDO, which collectively form Lido DAO.

The lawsuit was filed by Andrew Samuels, who resides in Solano County, California, the document states. The defendants are Lido DAO, as well as venture capital firms Paradigm, AH Capital Management, Dragonfly Digital Management and investment management company Robert Ventures. The document alleges that 64% of LDO tokens “are dedicated to the founders and early investors like [these defendants],” and therefore, “ordinary investors like Plaintiffs are unable to exert any meaningful influence on governance issues.”

3 reasons why Ethereum price can reach $3K in Q2

Ethereum on-chain and technical indicators show a long-term bullish argument for ETH price in the near to medium terms.

Ethereum’s native token, Ether (ETH), eyes a run-up toward $3,000 in Q2 2023 after wrapping the previous quarter with 55% gains.

ETH price nears potential breakout

The price of Ether has more than doubled after bottoming out in June at around $880, weathering a slew of negative events, including the collapse of FTX, interest rate increases, and stricter U.S. regulations.

In doing so, ETH/USD has painted an ascending triangle, confirmed by its rising trendline support and horizontal level resistance. The pattern suggests aggressive buying as lows get steadily higher while highs stay around the same level, indicative of a higher selling pressure at the given level.

As of April 2, ETH’s price is testing its horizontal level resistance range ($1,700-1,820) for a potential breakout move.

*ETH/USD three-day price chart featuring an “ascending triangle” bottom setup.*

A breakout will be confirmed if the price closes above the resistance range while accompanying higher volumes. Furthermore, the ascending triangle breakout target is measured with its length equal to the triangle height.

In other words, the bullish ETH price target is in the $3,350-3,900 range, depending on where traders see the triangle’s rising trendline support, as shown by the T1 and T2 in the chart above. This would suggest 80% gains by June.

Conversely, a pullback from the $1,700-1,820 range risks delaying the upside setup and resulting in a broader price correction.

Ethereum whale accumulation remains strong

From an on-chain perspective, Ether’s short-term and long-term trends look skewed toward the bulls.

Most Ethereum whale cohorts have increased their ETH accumulation in recent weeks, according to the latest data from Santiment. For instance, the supply of Ether held by addresses with a 1,000-10,000 ETH balance (blue in the chart below) has grown by 0.5% in March.

*Ether supply distribution among investors holding at least 1,000 ETH. Source: Santiment*

Similarly, the 1 million-10 million ETH (brown) and the 10 million – 100 million ETH balance cohorts have witnessed 0.4% and 0.5% rises, respectively.

The growth appeared amid what appears to be the absorption of selling pressure introduced by the 100,000-1 million ETH (pink) and 10,000-100,000 ETH (orange) address cohorts.

At the same time, the growth could attributed to the network’s proof-of-stake contracts — directly or by using third-party stakers such as Lido DAO (LDO).

*Ethereum 2.0 total value staked [in ETH]. Source: Glassnode*

The net Ether deposited at the official Ethereum 2.0 address crossed above 18 million ETH after rising about 3.5% in March.

The deposits have grown ahead of Ethereum’s Shanghai and Capella upgrades on April 12, which will enable stakers to withdraw ETH from the PoS smart contract. Currently, this is not possible.

MVRV Z-Score: Ethreum price bottom reversal

More bullish arguments stem from Ethereum’s MVRV Z-Score entering a stage that has previously preceded long-term ETH price rallies.

*Ethereum MVRV-Z Score. Source: Glassnode*

The MVRV Z-Score assesses when Ethereum is overvalued and undervalued relative to its “fair value.” As a rule, the MVRV Z-score indicates a market top (red zone) when market value rises above realized value, while the opposite indicates market bottoms (green zone).

Ether’s previous price recoveries coincide with its MVRV Z-Score bouncing from the green zone, suggesting the same could happen over the next three months.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

THETA, LIDO, KLAY and EGLD flash bullish signs as Bitcoin recaptures $23K

BTC price is chasing after $24,000 again, raising the possibility of LDO, EGLD, THETA and KLAY targeting new year-to-date highs.

The cryptocurrency markets and the United States equities markets witnessed profit-booking this week as the macroeconomic data hinted toward continued rate hikes by the Federal Reserve. Bitcoin (BTC) is down more than 4% and the S&P 500 fell 2.7% to record its worst week of the year.

The CME FedWatch Tool shows a 73% probability of a 25 basis points rate hike by the Fed in the March meeting but after the hotter-than-expected inflation readings in two weeks, the probability of a 50 basis point rate hike has started to slowly gain traction.

*Crypto market data daily view. Source:* *Coin360*

During periods of uncertainty, some coins enter a deeper correction while a few buck the trend and continue to outperform. Hence, it becomes important to select the right coins to trade.

A few coins that have witnessed a shallow correction or have bounced sharply off the support have been selected in this list. Let’s see their charts and determine the levels to watch out for.

BTC/USDT

Bitcoin plunged below the 20-day exponential moving average ($23,391) on Feb. 24 but the bears could not build upon this advantage and sustain the price below the strong support at $22,800.

The price bounced off $22,800 on Feb. 25 and the bulls are trying to push the price above the 20-day EMA. If they manage to do that, it will indicate that the BTC/USDT pair may consolidate between $25,250 and $22,800 for a few days.

The flattening 20-day EMA and the relative strength index (RSI) near the midpoint also suggest a range-bound action in the near term.

Alternatively, if the price slips below $22,700, the selling could intensify and the pair may plummet to the next strong support at $21,480.

*BTC/USDT 4-hour chart. Source: TradingView*

The 20-EMA has turned down on the four-hour chart and the RSI is in the negative territory. This indicates an advantage to the bears. Sellers will try to protect the 20-EMA, and if the price turns down from this level, the likelihood of a break below $22,800 increases. If that happens, the selling may intensify and the pair may slide to $21,480.

On the contrary, if the price breaks above the 20-EMA, it will suggest that bulls are buying on dips. That could push the pair to the 50-simple moving average and keep the price stuck inside the range for some more time.

LDO/USDT

Lido DAO (LDO) did not sustain below the 20-day EMA ($2.75) during the recent correction, which is a positive sign. Another bullish sign is the formation of the pennant near the local highs.

The bulls will try to propel the price above the resistance line of the pennant. If they succeed, the LDO/USDT pair could start the next leg of the up-move. The pair may first rise to $3.90 and thereafter attempt a rally to $4.24.

Conversely, if the price turns down from the resistance line, it will suggest that bears are selling on rallies. That could keep the price inside the pennant for a while longer. The bears will have to sink the price below the pennant if they want to signal a short-term trend reversal.

*LDO/USDT 4-hour chart. Source: TradingView*

The strong bounce off the support line of the pennant indicates aggressive buying on dips. Buyers will have to overcome the obstacle at the resistance line to regain control. If they do that, the pair may resume its uptrend.

However, the bears are likely to have other plans as they will try to protect the resistance line. If the price turns down from this level, the state of equilibrium may continue for some more time.

A break below the pennant could attract profit-booking by short-term traders. That may tug the price to $2.20 and later to $2.

EGLD/USDT

MultiversX (EGLD) turned down from the resistance line but an encouraging sign is that the bulls are trying to defend the 20-day EMA ($47).

Both moving averages are sloping up and the RSI is above 54, indicating that buyers have a slight edge. The bulls will try to push the price toward the resistance line where they are again likely to face strong opposition from the bears.

This bullish view could invalidate in the near term if the price turns down and plummets below the 20-day EMA. That will indicate selling by the bears on every minor rally. The EGLD/USDT pair could then tumble to the 50-day SMA ($44) and later to $40.

*EGLD/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the price is falling inside a descending channel pattern. Buyers purchased at lower levels and have pushed the price to the resistance line of the channel. If this resistance gives way, the pair could rise to the 50-SMA and thereafter attempt a retest of the strong barrier at $54.

Contrarily, if the price turns down from the resistance line, it will suggest that the bears have not given up. That could result in a drop toward the support line of the channel.

THETA/USDT

The bulls are trying to arrest Theta Network’s (THETA) pullback at the 20-day EMA ($1.15). Both moving averages are sloping up and the RSI is in the positive territory, indicating advantage to the bulls.

If buyers thrust the price above the downtrend line, the THETA/USDT pair could climb to the overhead resistance at $1.34. This is a formidable resistance and a break above it could open the gates for a possible surge to $1.70.

Instead, if the price turns down and plunges below the 20-day EMA, it will suggest that the short-term bulls may be rushing to the exit. That may start a deeper correction to the 50-day SMA ($1.05) and then to the psychological support at $1.

*THETA/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows the formation of a symmetrical triangle pattern. Both moving averages have flattened out and the RSI is oscillating near the center, indicating a balance between supply and demand.

A break below the triangle could tilt the short-term advantage in favor of the bears. The pair could first fall to $1.12 and then to $1.

If bulls want to prevent the decline, they will have to quickly propel the price above the triangle. That could start a journey to $1.27 and later to $1.30.

KLAY/USDT

Klaytn (KLAY) is attempting to break out from a basing pattern. The price rebounded off the 20-day EMA ($0.26) on Feb. 25, indicating solid buying on dips.

The bulls will try to pierce the overhead resistance at $0.34. If they do that, the KLAY/USDT pair could pick up momentum and soar to the psychological resistance at $0.50. Such a move will signal a potential trend change.

If the price turns down from $0.34, it will indicate that bears are fiercely protecting the level. That could again pull the price down to the 20-day EMA. A break below this level could indicate that the pair may spend some more time in the basing pattern.

*KLAY/USDT 4-hour chart. Source: TradingView*

The bulls arrested the pullback near the 61.8% Fibonacci retracement of $0.26 and started a recovery. There is a minor resistance at $0.32 but if this level is crossed, the pair could attempt a rally to $0.34 and thereafter to $0.37.

On the other hand, if the price turns down from the overhead resistance, it will suggest that bears are selling on rallies. That may enhance the prospects of a break below $0.26. If that happens, the pair may slide to $0.22.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

SEC’s crypto staking crackdown has uncertain consequences for DeFi: Lido Finance

A Lido DAO member raised concerns over what impact the SEC’s crackdowns on staking could mean for the future of DeFi in the U.S.

A crackdown by the United States securities regulator on crypto staking could have unintended consequences for decentralized finance, according to the head of business development at Lido DAO.

Jacob Blish — who leads business development at Lido’s decentralized autonomous organization — told Bloomberg in a Feb. 13 report that the most significant risk would be if the SEC eventually concluded that no U.S. citizen can interact with crypto staking services, including protocols.

“The biggest risk I personally see as a U.S.-based person is if they come down and say you can no longer even interact with or contribute to these types of protocols.”

“Then me, as a contributor to the DAO, does that mean I can’t work on Lido anymore? Do I have to go leave and do something else?” Blish added.

The governance of Lido is managed by the Lido DAO with members from all over the world voting on critical decisions that steer the protocol.

In the wake of the SEC launching lawsuits and other enforcement actions against crypto firms, Blish joined a growing number of people in the crypto industry calling for more transparency around regulations and rules going forward, saying:

“The most disappointing thing is we as an industry keep getting asked for transparency, but then me as a U.S. citizen, I get no transparency and how [regulator’s] decision-making process is going.”

On Feb. 9 the SEC charged crypto exchange Kraken with “failing to register the offer and sale of their crypto-asset staking-as-a-service program,” prompting the exchange to halt offering staking to its U.S. customers.

I honestly hope that somebody proves, in court, that there is a legal, user-friendly version of custodial staking that can be offered to US consumers. It’ll be a brutal, lengthy, expensive fight and a massive distraction but the industry and the USA will be extremely grateful. https://t.co/lhZPxykznD

— Jesse Powell (@jespow) February 9, 2023

The SEC’s latest action saw Coinbase co-founder and CEO Brian Armstrong defend staking in a Feb. 9 tweet, saying it would be “a terrible path for the U.S.” if a staking ban was to happen.

Coinbase chief legal officer Paul Grewal built on Armstrong’s tweets on Feb. 10, asking for clearer rules for the industry.

“The public shouldn’t have to parse complaints in federal court to understand what a regulator expects,” Grewal said.

MATIC, HBAR, LDO and BIT gather strength as Bitcoin price rebounds

BTC price could remain range-bound in the near term, but MATIC, HBAR, LDO and BIT could continue higher.

Bitcoin (BTC) price is trying to recover over the weekend but the current bounce lacks conviction. This suggests that dip buyers are nervous to load up before the release of January’s Consumer Price Index data on Feb. 14 as that could boost short-term volatility.

Although the near term is uncertain, analysts at Delphi Digital expect the United States Federal Reserve to pivot to an accommodative policy later in the year and that could be favorable for risk assets.

Another bullish projection came from Pantera Capital CEO Dan Morehead, who said that Bitcoin’s “seventh bull cycle” may have begun. Morehead highlighted that the decline from November 2021 to November 2022 lasted 376 days and that BTC price witnessed a 77% drawdown, in line with the median downdraft of 307 days and a median drawdown of 73% seen during earlier bear markets.

The analysts seem to be turning positive on Bitcoin for the long term but the near term remains uncertain.

Let’s study the charts of Bitcoin and select altcoins to spot the critical levels to watch out for.

BTC/USDT

Bitcoin nosedived to the strong support at $21,480 on Feb. 10. The zone between the 50-day simple moving average ($20,347) and $21,480 is likely to attract aggressive buying by the bulls.

The first hurdle on the upside is the 20-day exponential moving average ($22,347). This needs to be crossed to suggest that bulls are back in the driver’s seat. There is a minor hurdle at $22,800 but if that is scaled, the BTC/USDT pair could retest $24,255.

The bears are expected to defend the $24,255 to $25,211 zone with all their might because if this obstacle is surpassed, the pair could signal a potential trend change.

Conversely, if the price slumps below the 50-day SMA, it will suggest that bears are back in the game. The pair could then revisit the vital support zone between $18,000 and $16,000.

The four-hour chart shows that the bulls are trying to start a rebound off $21,480 but are facing selling near the 20-day EMA. If the price turns down from the current level and breaks below $21,480, the bears may attack the $20,000 psychological level with vigor.

The 20-EMA is flattening out and the relative strength index (RSI) is gradually rising toward the midpoint. This indicates that the short-term selling pressure may be easing.

If buyers drive the price above the 20-EMA, the pair could rise to $22,800 where the bears may mount a strong defense.

MATIC/USDT

Polygon (MATIC) only witnessed a shallow pullback in the past few days, signaling that traders are not exiting their positions in a hurry and are buying on minor dips.

The upsloping moving averages indicate that bulls are in control. The negative divergence on the RSI is a matter of concern but a positive sign is that the bears have not been able to yank the price below the 20-day EMA ($1.17).

That enhances the prospects of a break above the overhead zone between $1.30 and $1.35. If bulls succeed in their endeavor, the MATIC/USDT pair could start an up-move to $1.50 and thereafter to $1.70.

The first sign of weakness will be a break and close below the 20-day EMA. That clears the path for a potential drop to $1.05.

*MATIC/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that bears are offering formidable resistance in the $1.30 to $1.35 range but a positive sign is that buyers have not ceded much ground to the bears. This suggests that the bulls anticipate a move higher. If they thrust the price above $1.35, the pair could start the next leg of the uptrend.

If bears want to seize control in the near term, they will have to sink the price below $1.20. That could increase the possibility of a drop to $1.05. There is a minor support near $1.15 but that may not hold.

HBAR/USDT

Most major cryptocurrencies are retracing their recent rallies but Hedera Hashgraph (HBAR) has outperformed in the near term and broken out of the overhead resistance at $0.08.

The 20-day EMA ($0.07) is sloping up and the RSI is in the overbought territory, indicating that bulls are in command. However, the long wick on the Feb. 12 candlestick shows selling at higher levels.

The HBAR/USDT pair could witness a tough battle near the breakout level of $0.08. If bulls defend this level and flip it into support, the pair may start a new up-move toward $0.11. If that level is also scaled, the up-move could extend to $0.15.

Conversely, if the price plummets below the breakout level, it will indicate that bears continue to sell on rallies. The pair could then tumble to the 20-day EMA.

*HBAR/USDT 4-hour chart. Source: TradingView*

The fou-hour chart suggests that traders are booking profits near the psychological resistance at $0.10. The pair could pull back toward the 20-EMA, which is close to the breakout level. Buyers are likely to purchase the dip to this level. If they do that, the pair may try to rise above $0.10 and resume the up-move.

Contrarily, if the price dives below $0.08, it may trap several aggressive bulls. That could result in long liquidation and a decline to $0.07. The deep correction may delay the start of the next leg of the up-move.

LDO/USDT

LidoDAO (LDO) has been volatile in the past few days but a positive sign is that the bulls have successfully defended the 20-day EMA ($2.32). This indicates that sentiment remains positive and traders are buying the dips.

Buyers will next try to propel the price to the solid overhead resistance at $3. This level is likely to attract aggressive selling by the bears because if they allow $3 to be pierced, the LDO/USDT pair may pick up momentum and surge toward $4. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that buyers have the edge.

On the contrary, if the price turns down and breaks below the 20-day EMA, it will suggest that the pair may oscillate between $3 and $1.72 for a few days.

The price broke below the 50-day SMA but the bears could not build upon this momentum and sink the pair to the immediate support at $2. Buyers purchased the dip to $2.20 and pushed the price back above the moving averages. The pair could rise to $2.80 and thereafter to $3.

Sellers are likely to have other plans. They will try to pull the price back below the moving averages and retest the support at $2.20. If this level cracks, the pair could drop to $2. Such a move will point to a possible range-bound action in the near term.

BIT/USDT

While several cryptocurrencies have given back a part of their recent gains, BitDAO (BIT) has managed to remain above its immediate support at the 20-day EMA (0.55). This suggests that the bulls are not hurrying to book profits.

The BIT/DAO pair is not out of danger yet because the long wick on the Feb. 11 candlestick shows that bears are selling on rallies near $0.60. The bears will again try to sink and sustain the price below the 20-day EMA. If they can pull it off, the pair could extend its pullback to the 50-day SMA ($0.48).

Conversely, if the price rebounds off the 20-day EMA, the bulls will again take a shot at the $0.60 resistance. A break and close above this level will signal the resumption of the uptrend. The pair may then rise to $0.65 and then to $0.69.

*BIT/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair is stuck between the support at $0.54 and the resistance at $0.60. Both moving averages are flattening out and the RSI is near the midpoint, indicating a balance between supply and demand.

Usually, a consolidation above crucial support is a positive sign and that increases the likelihood of the continuation of the up-move. If bulls push the price above $0.60, the up-move may resume.

The bears will gain the upper hand if the price plummets below $0.54. That could open the doors for a possible drop to $0.50 and then to $0.46.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

5 cryptocurrencies that could benefit from a positive CPI report

Crypto markets flip green following the continuation of last week’s rally in equities, and SOL, XMR, LDO and AAVE could be ready to move higher.

Bitcoin (BTC) has finally pushed above the $17,000 mark after rallying to $17,375 on Jan. 12, with both the bulls and the bears eyeing the Consumer Price Index (CPI) readout due on Jan. 12. If the print shows that inflation is cooling off, risk assets may rally, but a negative surprise could attract strong selling.

While some believe that a macro bottom could be forming in Bitcoin, others remain skeptical. They draw a parallel between the current bear market and the dot-com bubble burst. The United States Federal Reserve stopped raising rates in May 2000 but the Nasdaq did not bottom out for two more years. If the same scenario plays out with cryptocurrencies, then the next bull run may not start in a hurry.

However, one positive for the future of the crypto industry is that legacy finance companies continue to show interest in the space. Laser Digital co-founder and CEO Jez Mohideen believes that the arrival of traditional companies could help regulate the cryptocurrency sector.

Do the charts signal a rally in Bitcoin? What are the other altcoins that are showing a positive chart structure? Let’s find out.

BTC/USDT

Bitcoin has been trading above the moving averages since Jan. 4. This is the first indication that the selling pressure could be reducing. The price reached the overhead resistance at $17,061 on Jan. 6 but the bulls could not ascend this level. This indicates that the bears have not given up yet.

A minor positive in favor of the bulls is that they have not allowed the BTC/USDT pair to tumble below the moving averages. If the price consolidates between the moving averages and $17,061 for some time, the prospects of a break above the overhead resistance could improve. If bulls kick the price above $17,061, the pair could surge toward $18,388.

Alternatively, if the price turns down and slumps below the moving averages, it will indicate that the pair could remain stuck between $17,061 and $16,256 for a few more days.

The four-hour chart shows that bears are guarding the $17,061 level but they have not been successful in pulling the price below the 20-day exponential moving average (EMA). This suggests that buyers are not rushing to the exit as they expect a break above the overhead resistance.

The gradually upsloping 20-EMA and the relative strength index (RSI) in the positive territory indicate that buyers have a slight edge. A break above $17,061 could signal the start of a new up-move in the near term.

If bears want to regain control, they will have to sink the price below the 50-day simple moving average (SM. The pair could then decline to $16,600 and stay inside the range for a while longer.

SOL/USDT

Solana (SOL) has been a huge underperformer in the past several months but the price action of the past few days increases the likelihood of a possible relief rally. It is too early to predict whether the expected move is a dead cat bounce or the start of a sustained recovery. However, the setup could be of interest to short-term traders.

The SOL/USDT pair has rallied sharply from the Dec. 29 low of $8. Buyers propelled the price above the 50-day SMA ($12.75) on Jan. 3 and have managed to sustain the pair above this level since then. This suggests that the bulls are trying to flip the moving averages into support.

If the price breaks above the overhead resistance at $15, the pair could accelerate toward $19. This level may again act as a barrier but if crossed, the rally could extend to the 50% Fibonacci retracement level of $23.40.

The bulls may lose their grip if the price turns down and slides below the moving averages. Such a move will indicate that bears are active at higher levels.

*SOL/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price pulled back to the 20-EMA but the bulls purchased this dip. This indicates a change in sentiment from selling on rallies to buying on dips. The bulls will try to extend the up-move by driving the price above the $14.24 to $15 resistance zone.

On the other hand, the bears will try to pull the price below the 20-EMA. If they can pull it off, the pair could slump to the 50-SMA. This level may behave as a support but if bears sink the price below it, the decline could extend to $11.

XMR/USDT

Monero (XMR) broke out of the falling wedge pattern on Jan. 5 and buyers have managed to sustain the price above the breakout level for three days. This indicates a potential trend change.

The moving averages have turned up and the RSI is in the positive territory, signaling that buyers have the upper hand. There is a minor resistance at $162 and then again at $167 but both these levels are likely to be crossed.

The XMR/USDT pair could thereafter reach the overhead resistance at $174. This level may act as a major obstacle but if bulls manage to overcome it, the pair could soar to $200.

Contrary to this assumption, if the price turns down and plummets below the moving averages, it will suggest that the breakout from the wedge may have been a bull trap. The downward momentum could pick up on a break below $138.

*XMR/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are trying to form a short-term double-top pattern near $160. Sellers have pulled the price below the 20-EMA, which opens the doors for a possible drop to the 50-SMA. The bulls may fiercely protect the moving averages because a break below it could tilt the advantage in favor of the bears.

If the price turns up from the current level, it will suggest that lower levels are attracting buyers. The pair could then once again rise to the overhead resistance at $160. If this resistance is scaled, the up-move could resume.

LDO/USDT

Lido DAO (LDO) broke out of the downtrend line on Jan. 1 and made a sharp move higher. This suggests the downtrend may have ended.

The moving averages have completed a bullish crossover, indicating that buyers have the upper hand but the overbought levels on the RSI point to a short-term correction or consolidation.

If buyers do not give up much ground from the current level, the LDO/USDT pair could reach the overhead resistance at $1.85. This level may again act as a strong barrier but if bulls overcome it, the pair could reach $2.30.

The first sign of weakness will be a break below the 20-day EMA ($1.21). Such a move will suggest that bears are selling on rallies.

The four-hour chart shows that the pair has started an uptrend. The upsloping moving averages and the RSI in the overbought zone suggest that bulls remain in control. There is a minor resistance at $1.71 but if that is crossed, the rally could reach $1.85.

The 20-EMA has acted as a strong support during pullbacks, hence this remains an important level to keep an eye on in the near term. If this support cracks, the pair could slide to the 50-SMA.

AAVE/USDT

Buyers successfully defended the psychological support near $50 and are trying to form a double bottom pattern. This is the reason for selecting Aave (AAVE).

The bounce off the strong support at $50 has reached the 50-day SMA ($58). Both moving averages have flattened out and the RSI has jumped into the positive territory, indicating advantage to buyers.

If bulls thrust the price above the 50-day SMA, the AAVE/USDT pair could rally to the downtrend line and thereafter to $67. A break and close above this level will complete a double bottom which has a pattern target of $84.

This bullish view will be invalidated if the price turns down and plummets below the vital support at $50.

*AAVE/USDT 4-hour chart. Source: TradingView*

The bulls are trying to push and sustain the price above the immediate overhead resistance near $58. If they manage to do that, the pair could rally to the downtrend line. This level may act as a strong hurdle but on the way down, if bulls flip the $58 level into support, it could increase the likelihood of a break above the downtrend line.

The first support to watch on the downside is the 20-EMA. If this level gives way, the pair could slide to $54. This is an important level for the bulls to defend if they want to keep the short-term momentum in their favor.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Selling the rumor? Biggest Ethereum Merge staker Lido DAO loses 40% in 30 days

LDO price faces downside risks from “sell-the-news” sentiment coupled with a bearish technical setup.

Lido DAO (LDO) has declined by more than 40% in the last 30 days with more room to fall in the coming days amid a potential sell-the-news event, such as the Merge.

Lido DAO Ether deposits surge 160% in 2022

Lido DAO is Ethereum’s biggest staking service, having 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, according to the latest data.

*ETH 2.0 total value staked by provider. Source: Glassnode*

In comparison, Lido DAO’s total staked amount was around 1.6 million ETH at the beginning of this year. The boom reflects a growing demand for Lido DAO services ahead of Ethereum’s scheduled transition from proof-of-work (PoW) to proof-of-stake (PoS) via the Merge on Sep. 15.

LDO, a governance token in the Lido DAO ecosystem, has also undergone an unprecedented price rally in recent months, up more than 350% after bottoming out at $0.39 in June.

Still, the token’s sharp correction in the past month raises the possibility of an extended downtrend now that the pre-Merge hype is nearing its end. In addition, a technical setup also alerts about a potential price decline ahead.

LDO hints at descending triangle reversal

The latest selling period in the Lido DAO market started after LDO topped at $3.10 on Aug. 13. This downtrend has painted a pattern that appears to be a descending triangle .

Descending triangles that form at the top suggest bullish exhaustion. Theoretically, a descending triangle breakdown below the lower trendline could crash the price to the level at length equal to the maximum triangle height.

LDO now tests the triangle’s lower trendline area, at around $1.79-$1.82, as support. The token could drop toward $1.17 if it breaks below the support level while accompanying a rise in trading volumes. In other words, a 35% drop from current price levels.

*LDO/USD daily price chart featuring descending triangle breakdown setup. Source: TradingView*

Conversely, a rebound from the $1.79-182 support area could have LDO test the descending triangle’s upper trendline at around $2.10 as resistance.

Also, a decisive breakout above the upper trendline would risk invalidating the bearish setup discussed above.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

These 3 altcoins have completely ignored the bear market in the last 90 days

Several altcoins have not only outperformed Bitcoin and Ethereum in the last three months but have also posted impressive gains.

The cryptocurrency market overall endured a bad summer on back-to-back pieces of bad news, ranging from Terra’s (Luna) —now renamed Terra Classic (LUNC) — collapse to the Celsius Network’s liquidity crisis. But some tokens have bucked the downtrend and have actually seen their valuations go up over the summer.

Specifically, the last 90 days have seen these so-called alternative cryptocurrencies, or “altcoins,” outperforming top coins like Bitcoin (BTC) and Ether (ETH). Here are three among them:

Chiliz (CHZ)

Chiliz’s (CHZ) return in the last 90 days comes to be above 80%, the highest among the top-cap cryptocurrencies. Moreover, CHZ is down only 26% year-to-date compared with BTC and ETH losing 57% and 60%, respectively.

*Cryptocurrency performance (last 90 days). Source: blockchaincenter.net*

On the daily chart, CHZ’s price reached $0.20 per piece on Aug. 29, and was looking to close the month in profit. Conversely, from a technical perspective, the Chiliz token stares at a potential 55% correction to $0.09 in September, based on the setup shown below.

*CHZ/USD three-day price chart. Source: TradingView*

Originally, the CHZ price rally started amid a rebound witnessed across the crypto market. But ts upside move picked momentum on a flurry of optimistic updates, including a partnership with crypto exchange Huobi Global and a nearly 25% acquisition of FC Barcelona’s Barça Studios.

FC Barcelona announces the sale of 24.5% of Barça Studios to the company https://t.co/SkC8g62KY4 for 100 million euros to accelerate the club’s audiovisual, blockchain, NFT and Web.3 strategy.

More details https://t.co/0sM9grct3L pic.twitter.com/5xcLWYg440

— FC Barcelona (@FCBarcelona) August 1, 2022

Chiliz also benefited from the hype around its back-to-back network updates as it attempts to do away with Ethereum and launch its own chain CHZ 2.0.

Lido DAO (LDO)

Lido DAO (LDO) has rallied around 60% in the last 90 days primarily due to the euphoria around “the Merge ,” Ethereum’s long-awaited network transition from proof-of-work to proof-of-stake in September.

Lido DAO helps underfunded users to become stakers on Ethereum’s upcoming proof-of-stake chain. It does so by collecting users’ Ether funds into a pool of 32 ETH—as required by the Ethereum network—and depositing them into the Merge’s official smart contract.

*Ethereum 2.0 TVL staked by provider as of Aug. 28. Source: Glassnode*

The prospects of Lido DAO attracting more users in the days leading to and after the Merge have triggered buying in an otherwise bear market.

But like Chiliz, LDO’s price risks plunging lower by 20% to $1.31 in September as shown in the setup below.

*CHZ/USD daily price chart. Source: TradingView*

The $1.31-target serves as the support in the consolidation area marked in red, given its historical performance.

Quant Network (QNT)

Quant Network (QNT) rose by more than 40% in the last 90 days, initially driven higher by a broader crypto market uptrend but picking momentum on speculations that their interoperable blockchain protocol would find adoption across governmental and regulatory bodies.

⚔️ Group 2 — Financial Action Task Force (FATF)

Quant CEO @GVerdian has worked diligently to keep Overledger in compliance with all existing and forthcoming regulations, including the FATF’s framework for VASPs (see image).

☑️ Gilbert’s #FATF hashtag from 2019 says it all. ⬇️ https://t.co/0hvTDqAESh pic.twitter.com/F3Txe8rWPr

— Greg Lunt (@GregLunt27) July 8, 2022

But from a technical perspective, QNT risks a 40% price decline from its current price level owing to the formation of a head-and-shoulders setup on its daily chart with a $57 target by September, as shown below.

*QNT/USD daily price chart. Source: TradingView*

Other winners

Ethereum Classic (ETC) has also surged by more than 40% in the last 90 days in hopes that it would offer a safe haven for Ethereum miners after the PoS upgrade.

WhilPolygon (MATIC) has rallied by 27% in the same period, followed by Uniswap (UNI), which is up 13%.

3 cryptocurrencies that stand to outperform ETH price thanks to Ethereum’s Merge

It’s not just ETH price that stands to benefit from Ethereum’s move to proof-of-stake in September.

After years of waiting, Ethereum is finally prepared to become a full-fledged proof-of-stake (PoS) blockchain. Besides Ethereum’s native token, Ether (ETH), the valuation of several other tokens has not only benefited greatly but could also keep outperforming ETH after the Merge.

Ethereum steps closer toward the Merge

The leading smart contract platform completed the last of its three public testnets, dubbed Goerli, on Aug. 11. Therefore, there should be no delays in Ethereum’s Merge, expected to go live on Sept. 19.

Ether price jumped 5% to approximately $1,950, its highest level in over two months, after the Goerli update. Meanwhile, certain crypto assets that could benefit from a successful Merge are undergoing upside moves and have even been outperforming ETH in the past month.

*ETH/USD daily price chart. Source: TradingView*

Will these tokens continue to outperform ETH price into September? Let’s take a closer look.

Lido DAO (LDO)

The Merge will replace Ethereum’s army of miners with validators, who will be required to front 32 ETH as an economic stake.

This major staking requirement has opened up opportunities for middlemen, i.e., platforms that collect Ether from underfunded stakers and put the proceeds together to become validators on the Ethereum blockchain. Lido DAO is one among them.

Lido DAO is the leading staking service in terms of value locked inside Merge’s official smart contract. Notably, it has poured 4.15 million ETH into the so-called Eth2 contract, leading Coinbase, which has staked approx. 1.55 million ETH on behalf of its clients.

A successful Merge could boost the demand for Lido DAO services.

In turn, it could prove bullish for the platform’s official governance token, LDO, whose value had already soared by more than 200% since July 14, when Ethereum first announced the likelihood of becoming a PoS chain in September.

*LDO/USD daily price chart. Source: TradingView*

Therefore, LDO is one of the primary crypto assets that could benefit the most from Ethereum’s successful transition to PoS.

Ethereum Classic (ETC)

Ethereum Classic (ETC) is another asset that has grabbed the bulls’ attention in recent weeks. That is primarily due to its potential to provide a haven for miners exiting the Ethereum network.

Since Ethereum Classic is the split chain from a contentious hard fork in 2016, it exhibits almost all the technical qualities of the current proof-of-work (PoW) Ethereum network, making it a natural refuge for ETH miners.

Like LDO, ETC has also rallied by over 200% since the Ethereum’s Merge launch announcement on July 14. Therefore, its likelihood of continuing its uptrend is high ahead and after the Merge.

*ETC/USD daily price chart. Source: TradingView*

Optimism (OP)

Optimism is an Ethereum rollup service. In other words, it aggregates mass transaction data off-chain into batches and releases results back to the Ethereum mainnet when a consensus is reached.

The so-called layer-2 solution could benefit from Ethereum’s Rollup-Centric Roadmap after the Merge. Interestingly, OP, Optimism’s governance token, has rallied nearly 250% since the Merge release date announcement.

*OP/USD daily price chart. Source: TradingView*

The prospects of Ethereum deploying Optimism on its network after the Merge could serve as a bullish catalyst for OP price.

Lido DAO: Ethereum’s biggest Merge staker just jumped 30% — will LDO rally into September?

LDO price is up roughly 30% over the past day, gaining approximately 500% since mid-June.

Lido DAO (LDO) price edged higher on Aug. 3, primarily due to similar upside moves elsewhere in the crypto market and a rising euphoria around Ethereum’s network upgrade in September.

On the daily chart, LDO’s price 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, suggesting traders’ strengthening bullish bias for Lido DAO.

Lido DAO is a liquid staking solution for Ethereum by total value deposited. In other words, it allows users to participate in the running of Ethereum’s upcoming proof-of-stake (PoS) chain in exchange for daily rewards.

Ethereum’s Ether (ETH) token has rallied by more than 90% since mid-June in part due to buzz around its blockchain’s PoS upgrade called the Merge , expected in September.

Lido DAO, the biggest Merge staking serve provider, has benefited from the craze simultaneously, with LDO, its governance token, rallying nearly 500% in the same period.

Notably, the total number of Ether staked into the Merge smart contract—also called ETH 2.0—via Lido has surged from 3.38 million on June 13 to 4.16 million on Aug. 3, according to DeFi Llama.

*Total ETH deposited into Ethereum Merge contract via Lido DAO. Source: DeFi Llama*

Charts hint at LDO price rally ahead

Furthermore, LDO’s technicals appear skewed to the upside due to its “bull flag .” This technical pattern typically appears during an uptrend, when the price consolidates lower inside a descending channel after a strong upside move.

LDO has been forming a similar pattern. On the daily chart, the token’s price has been reversing course after undergoing a strong uptrend that topped at around $2.66 on July 28.

*LDO/USD daily price chart featuring ‘bull flag’ setup. Source: TradingView*

As a result, the Lido DAO token now eyes a break above its current descending channel range, similar to the upside move that followed its bull pennant formation in July.

As a rule, the bull flag’s profit target comes to be at length equal to the size of the previous uptrend, called “flagpole,” or $4 by September, up 65% from Aug. 3’s price.

Bull flag failure scenario

On the flip side, a bull flag’s potential to reach its upside target stands at around 67%, according to research conducted by Samurai Trading Academy. Therefore, LDO’s bull flag could fail if its price breaks below the pattern’s lower trendline.

The trendline coincides with a support confluence made up of $1.91‚ which capped LDO’s upside moves in late July, and the 20-day exponential moving average (20-day EMA; the green wave in the chart below) at around $1.80.

Thus, a bear flag breakdown, or a break below the support confluence, could have LDO eye the 50-day EMA (the red wave) near $1.43 as its downside target.

This level coincides with the 0.236 Fib line around $1.42, which served as a price floor in February and May.