LDO started the new year with a bang, highlighting its growth in daily active users and Ethereum stakers
- LIDO price extends the gains for the second consecutive session on Monday.
- The price of Lido DAO (LDO) jumped more than 12% after its key momentum oscillator moved into “overbought territory.
- DAO overstepped MakerDAO in terms of total value locked (TVL).
LDO undergoes retracement amid negative RSI divergence
LDO’s price jumped to high as $1.26 on Monday, amounting to a more than 12% rise. The token’s sharp upside move took clues from bullish technical oscillators and fundamentals.
The recent price action is a 4-hourly RSI above 80 with a bearish divergence. An overbought RSI signals that the rally might be nearing a pause while preparing for a short-term pullback.
Further, more downside cues from the Lido DAO token come from its receding bullish momentum, which kept the breaks on the price rally.
As of press time, LDO/USD is exchanging hands at $1.20, up 12.03% for the day. As per Coinmarketcap, the 24-hour trading volume rose more than 180%. A rise in price along with volumes is a bullish sign.
The Moving Average Convergence Divergence (MACD) trades above the midline with a modest slowing down in bullish momentum.
With the bearish RSI divergence, we expect the price could retrace toward the horizontal resistance zone around $1.15. If more sellers join next target could be $1.05.
On the other hand, a daily close above the session’s high could mean the continuation of the party with an eye on a November high of $1.29.
Fundamentally, top-ranked MakerDAO, with $5.93 billion in total value locked (TVL) dragged to second place by Lido Finance with a $5.98 billion staking service in various networks.
