As an experienced crypto analyst, I believe that the approval of Ethereum ETFs by the SEC is a game-changer for the cryptocurrency market, particularly for sectors like Liquid Staking Derivatives (LSD) coins, with Lido being at the forefront.
In the past 24 hours, Lido (LDO), the liquid staking platform for Ethereum (ETH) and Polygon (MATIC), has experienced a noticeable price surge. This uptick can be attributed to the SEC’s approval of long-standing Ethereum spot ETF applications on Thursday.
The native token of the protocol, LDO, has managed to reclaim the price mark of $2.30 and is attempting to shatter the one-month bearish trend initiated following the market correction in April.
LSD Sector Set To Soar With Ethereum ETF Approval?
According to Bitcoinist, a related site, the Securities and Exchange Commission (SEC) has endorsed proposals for Ethereum ETFs, as indicated in an official document. This filing underscores that these plans align with the Exchange Act and regulations pertaining to national securities exchanges.
Notable entities including BlackRock, Grayscale, Bitwise, VanEck, Ark Invest/21Shares, Invesco Galaxy, Fidelity, and Franklin Templeton have submitted proposals that meet the conditions to prevent deceit and manipulation, shield investors, and maintain public trust.
Crypto expert Daan Crypto Trades, discussing the Ethereum ETF approval on X (previously known as Twitter), noted that the recent approval of new index funds has resulted in two distinct sectors coming out on top.
One sector to consider is Liquid Staking Derivatives (LSDs), with Lido being a leading player. Lido enables Ethereum token holders to stake without having to lock tokens or manage their own infrastructure. This freedom empowers users to participate in various on-chain financial activities like lending and farming.
Key Levels To Watch For Lido
As an analyst, I’ve observed that LDO hit a high of $2.49 in the wee hours of Friday. However, it has since retreated to its present trading value of $2.35. Notably, data from Spot On Chain indicates that six major investors, or “whales,” have withdrawn approximately 4.3 million LDO tokens ($9.59 million) from Binance within the past day.
The rising sentiment towards holding the token implies a possible surge in its price, mirroring Ethereum’s trend, when the recently authorized index funds for the second-largest cryptocurrency become available in the upcoming months.
As a researcher, I’ve discovered some intriguing data from CoinGecko. Within the past 24 hours, Lido has recorded a trading volume amounting to $350 million – representing a significant surge of 78.60% compared to the volume observed on Thursday. Nevertheless, it’s important to note that this figure remains nearly 68% shy of its all-time high (ATH) of $7.30, which was reached during the 2021 bull market.
Moving forward, optimistic investors should keep a keen eye on the next resistance point in the LDO/USD chart, which lies at $2.55. Clearing this hurdle is essential for shattering the bearish trend that has dominated the market for the past month, possibly paving the way for revisits to $2.70 and $2.90.
In contrast, the $2.21 level has functioned as a notable line of defense for Lido over the past week and a half, effectively halting its advance prior to the recent price surge.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-05-25 05:46