Lido Price Prediction: Lido's DeFi dominance surges amid rising tensions with Sushiswap, will LDO sink or swim? Discover LDO Price Analysis!

As Lido (LDO) price analysis reveals a make-or-break retest of the MA200 in a lifeline to technical structure, has the Lido V2 hype passed? And how will it impact Lido price prediction.

As a major player in the Decentralized Finance (DeFi) world, the liquid staking protocol Lido has not just made a mark but is etching its dominance with an iron fist.

Climbing from a humble 7.45% market share just a year ago to a mammoth 26.18% of total value locked (TVL) in DeFi today, Lido has emerged as a key player.
Lido Price Prediction: Lido's DeFi dominance surges amid rising tensions with Sushiswap, will LDO sink or swim? Discover LDO Price Analysis!
In the world of liquid staking, Lido’s control is even more evident, standing head and shoulders above the competition with a staggering 73% market share in ETH derivatives.
The protocol currently has approximately $12.2 billion locked in, amounting to over a quarter of the total $46.6 billion locked in DeFi.
Lido Price Prediction: Lido's DeFi dominance surges amid rising tensions with Sushiswap, will LDO sink or swim? Discover LDO Price Analysis!
This includes a significant portion of Ethereum (ETH), besides other networks like Polkadot, Solana, Polygon, and Kusama.
But the journey to this point was no cakewalk – this time last year, Lido’s TVL was just over $8 billion, dwarfed by the DeFi giant MakerDAO, which held 8.87% of the DeFi economy’s value.
However, the start of 2023 marked a turning point for Lido, a moment when its dominance began its unstoppable ascent.

Lido Dispute with SushiSwap Escalates

The path forward for Lido is not without its challenges – the DeFi platform has been embroiled in an ongoing debate with SushiSwap over the return of exploited funds.
Amid the tension, a governance proposal has been put forth to decide whether the 40 ETH worth $72,000 that landed in Lido’s treasury should be returned to SushiSwap.
However, the recent voting process seems to be tilting towards no action, further fueling the disagreement.
Stay tuned as we dive into the intricacies of LDO’s price fluctuations in the light of Lido’s DeFi dominance, liquid staking supremacy, and the ongoing controversy with SushiSwap in Lido price prediction.

Lido (LDO) Price Analysis

After a thunderous pump in mid-May saw price surge +61% following the highly anticipated launch of Lido V2, LDO has been stuck in a tough 9 days of retracement as bulls reel from top line resistance.

Now trading at a critical $1.96 (a 24 hour change of -2.42%) – Lido bulls are fighting to hold ground and consolidate above a vital lifeline from moving average support.

Lido Price Prediction: Lido's DeFi dominance surges amid rising tensions with Sushiswap, will LDO sink or swim? Discover LDO Price Analysis!

Source.

Indeed, the -23.5% retracement move now faces a sink-or-swim moment, as markets wait to see if a consolidation zone can form here.

Moving averages have emerged as the foundation of LDO price action over the past month, as the descending MA20 converged with the ascending MA200 on May 14.

A gently cascading -52% bleed-out dominated LDO price action from the end of February to the onset of May.

On May 4, as Ethereum pumped, LDO sank critically below the MA200 which formed over a week of capstone local resistance only ended by the timely launch of the V2 staking platform.

Now in a re-test of the MA200, failure to consolidate above $2.00 could spell disaster for Lido’s recovery.

The recent rejection from topside resistance on May 17 has given some silver-lining, notably the RSI oscillator has cooled off dramatically from an overheated 63.

Now sat with bullish divergence at 45 (a clear oversold signal), a return to upside momentum could be on the cards.

However, the MACD highlights the vital ongoing retest of the MA200, with an on the fence reading at 0.0012 showcasing the make-or-break moment in technical structure.

Lido (LDO) Price Prediction

With Lido’s technical structure in such a decisive position, markets are on edge for the impact of US PCE data (released at 8:30AM ET today) for directive momentum.

Bullish project sentiment, with DeFi dominance surging could see Lido bounce hard back up to topside resistance from this level.

However, challenging technical structure could see the value of Lido plummet, especially if persistent core inflation comes in higher than anticipated.

Lido Price Prediction: Lido's DeFi dominance surges amid rising tensions with Sushiswap, will LDO sink or swim? Discover LDO Price Analysis!

Source.

With this in mind, the Lido price prediction has a topside target at $2.30 (a possible +16.85% move).

However, looking to downside risk LDO has the propensity to cascade back down to a lowly $1.575 (a potential drop of -20%).

This leaves the Lido price prediction with a risk: reward structure of 0.84 – as risk overwhelms reward.

Stay tuned with Business2Community to discover the latest crypto market price predictions.

RELATED:

AiDoge (AI) - Meme Generation Platform

Our Rating

AiDoge crypto logo
  • Create & Share AI-Generated Memes
  • Newest Meme Coin in the AI Crypto Sector
  • Listed on MEXC, Uniswap
  • Token-Based Credit System
  • Stake $AI Tokens to Earn Daily Rewards
AiDoge crypto logo