💧 Lido DAO Crashed 16% Overnight Post SEC Allegations: What’s Next
The Lido DAO (LDO) token has faced allegations from the Securities and Exchange Commission (SEC) against its MetaMask officer regarding the staking feature of LDO and RPL.
The SEC claims that Consensys has sold Staked tokens through unregistered transactions on the MetaMask Stake platform.
After this news, a sharp selloff happened, leading the price to drop over 16% overnight.
Amidst the price recovery in the last week, the token could not obtain enough strength to cross multiple barriers in a single go.
Notably, near the $2 mark, a downward-sloping trendline and multiples cluster of exponential moving averages was placed. It was quite tricky for bulls to cross multiple blocks and faced a sharp selloff with strong volumes.
However, the Lido DAO token was consistently retraced and might not drop ahead. Recently, it has flipped from the demand zone of $1.50 and made a double bottom there.
Meanwhile, the LDO token has slipped below its key EMA’s support zone, and its previous five-day low of $2 signifies a negative outlook for the upcoming sessions.
At press time, the Lido DAO (LDO) token was traded at $1.93 with an intraday drop of 13.36%, reflecting neutrality on the charts. It has a monthly return ratio of -14.90% and 15.20% yearly, reflecting short-term retracement.
The pair of LDO/BTC is at 0.0000324 BTC, and the market cap is $1.76 Billion. Analysts are neutral and suggest that the LDO price may face volatile moves and might retain the $2 mark shortly.
🔸 The Lido Dao (LDO) Price Dropped Over 16% Overnight
The Lido Dao token (LDO) had made consecutive doji candlesticks in the past three sessions and failed to gain momentum near the 200-day EMA mark.
In yesterday’s session, SEC allegations brought negative sentiments, and sellers reactivated their strength and succeeded in their mission. After that, a long, bearish engulfing candlestick was made, which erased over 16% of gains in just a few hours.
