Over the past 24 hours, the value of two altcoin projects has been in free fall. There are certain news behind the decline of these cryptos. Here are the details…
Lido DAO (LDO) drops 40 percent in 20 days
Lido DAO (LDO) has dropped more than 40 percent in the last 30 days. According to some, LDO’s value is at risk of falling further with the Merge to be seen in the upcoming period. Lido DAO, as we reported on cryptokoin.com, is Ethereum’s largest staking service, having deposited more than 4.14 million Blockchain native asset ETH (ETH) in Ethereum 2.0 smart contract on behalf of its users, according to the latest data.
In contrast, the total stake of Lido DAO was around 1.6 million ETH at the beginning of this year. The increase reflects increased demand for Lido DAO services prior to Ethereum’s planned transition from proof-of-work to proof-of-stake via the September 15 merge. LDO, a governance token in the Lido DAO ecosystem, has seen an unprecedented price increase in recent months, gaining more than 350 percent after bottoming out at $0.39 in June.
Predictions for Altcoin
Still, the token’s sharp correction last month came to the fore as the Merge issue came to an end. According to analyst Yashu Gola, this raises the possibility of a prolonged downtrend. Additionally, a technical setup also warns of a possible price drop. The last period of sales in the Lido DAO market began after LDO reached $3.10 on August 13. This downtrend has drawn a pattern that looks like a descending triangle, according to the analyst.
The descending triangles formed at the top indicate bullish fatigue. Theoretically, a triangle dump below the lower trendline could drive the price down to a level of length equal to the maximum triangle height. LDO is now testing the lower trendline area of the triangle as support. If the token breaks below the support level accompanied by an increase in trading volumes, it could drop to $1.17. In other words, it could indicate a 35% drop from current price levels.
Controversial coin Terra (LUNA) fell close to 50 percent after the latest development
On the other hand, the value of Terra (LUNA) has lost as much as $2.76 in the last 24 hours. This development took place after the South Korean authorities issued an arrest warrant for Terra CEO Do Kwon. As it is known, Terra had a collapse in May, dragging the crypto money market into a deep decline. Terra’s depreciation caused investors to lose almost $40 billion. However, the cryptocurrency, which became quite volatile after the crash in May, had risen over the past months. For this reason, it became a favorite of short-term traders.
