Lido DAO Joins Crypto Market Fall With Ethereum Noting a 6.4% Dip

Key Insights:

• Ethereum joined the altcoins by taking a break from its rally today.
• Lido DAO’s native token did not note much drawdown either.
• Bitcoin kept its movement around the $23k mark.

Of all the cryptocurrencies currently in the market, Lido DAO’s native token LDO has been one of the best performers. But after a long rally, the cryptocurrency is also taking a break with the king of altcoins, Ethereum.

Lido DAO in a Trend Reversal?

As it appears to be, LDO’s good old days seem to be coming to an end as the altcoin is entering a potential downtrend due to excessive bullishness, which also greatly benefited the coin.

Up by 236.43% in the span of just 19 days, LDO has not only successfully recovered its June crash losses of 61.52% but also placed it above the $1.5 mark.

However, LDO is on the verge of dropping down as the price indicators are indicating a downtrend in the asset. The presence of Parabolic SAR’s white dots above the candlesticks is the first evidence of the same, which LDO is observing for the first time in almost two weeks.

Secondly, the Relative Strength Index (RSI) also backs the same as after hitting the overbought zone at the 80.0 mark, the asset usually notices a trend reversal.

Thus with such clear bearish cues, LDO might witness a drop in price soon but hopefully, keep above the $1 mark.

Ethereum Joins Its Subjects

The altcoin king took a break from its uptrend in the last two days as it moved sideways at the $1.5k mark.

Although the slowdown won’t make a significant impact on the cryptocurrency that has recovered by more than 57.8% in the last 33 days, it is important for ETH to sustain the momentum in order to recover the rest of its 71.75% losses it witnessed between April and June.

The MACD is exhibiting some bearishness thanks to the appearance of the red bars on the indicator. However, since it is still far from a bearish crossover, the situation isn’t worrying. 

Secondly, the Bollinger Bands’ divergence is still indicating high volatility for the asset, but since the candlesticks are above the basis of the bands, the price swing will mostly be positive.

While considering the price indicators, ETH looks safe from a drop in price, if the broader market cues turn bearish, the altcoin king might lose its recovery.