Key Takeaways:
- Lido DAO has launched its V2 version on the Ethereum Mainnet.
- The run-up to the launch saw the LDO price spike by over 43%
NEW DELHI (CoinChapter.com) — Ethereum staking solution Lido DAO (LDO) announced the launch of its V2 upgrade on May 15. The team behind the upgrade called it “the most important upgrade to the Lido protocol to date.”
The V2 update would introduce Ethereum withdrawals on the Lido DAO platform, allowing users to unstake ETH following Ethereum’s Shanghai update. Interestingly, Lido is the largest staking pool on the Ethereum network.
The V2 upgrade would allow users to burn their stETH and exit the protocol at a 1:1 ratio. In addition, the latest update adds a staking router to the Lido DAO framework, which will help develop “on-ramps for new Node Operators.”
Lido DAO’s latest upgrade also included several other changes. For example, the team introduced a “significant” rewrite to its Oracle smart contract and off-chain daemon contracts (smart contracts that users can configure so that the network can activate them automatically at specified block intervals).
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The Lido DAO stated the rewrite was necessary to support the withdrawal functionality. Furthermore, the Lido V2 upgrade underwent multiple security audits to ensure user confidence in the project.
Some audits include Sigma Prime auditing the updated dc4bc version, ChainSecurity auditing the Staking Router code, etc.
As the upgrade went live, withdrawal requests surged on the platform.
LDO Price Eyes Breakout From Bullish Wedge Pattern
Meanwhile, LDO price attempts to break out from a bullish technical pattern called the ‘Falling Wedge.‘
Two trendlines connecting reaction highs and lows converge down the slope to form the pattern. The falling wedge forms during a downtrend. Traders view it as a bullish signal as the converging trendlines suggest the downtrend is losing momentum and buyers are entering the market.
Volume declines as the pattern progresses before surging when the breakout occurs. The upside target for the breakout is equal to the maximum distance between the falling wedge’s upper and lower trendlines.
Thus, confirming the pattern could result in the LDO price registering 86% gains to $4.16 per token price label.
LDO Price Recovers May Losses
News of the V2 upgrade acted as a tailwind for LDO price, helping the token rally 43% since May 12 to form a daily high near $2.3 on May 16. However, bears pared some of the gains, but the rally helped the Lido DAO token price cross above its short and long-term EMA trendlines.
If the token breaks out above the upper trendline of the wedge, bulls would likely try to confirm the wedge pattern. The resulting push might help the LDO price reach the $2.4 resistance level.
Furthermore, the LDO price might utilize the increased number of buyers in the market to target resistance near $2.73 before downside corrections pare gains.
Conversely, the RSI for LDO is moving steadily towards the overbought regions, clocking at 59.27 on the daily charts. A bearish trend reversal often follows overbought RSI levels; hence traders view the occurrence as a sell signal.
As sellers enter the market, the profit booking could drop the LDO price to its support level near $2.1. Moreover, breaching the immediate support level could see the Lido DAO token testing the support level near $1.83 before recovering.
