Stader crypto price is nearing $1; how high can SD go?

Stader crypto price made a strong comeback, reaching its highest level since May 9, making it one of the best-performing altcoins this week.

Stader (SD), one of the leading players in the liquid staking industry, rose by 213% to $ 0.95 from its lowest level this month. This increase increased its market value to $37.90 million and its fully diluted valuation to $111.7 million.

Stader is one of the top players in the liquid staking industry. Most of its assets (about $426 million) are in Ethereum (ETH), with the rest on Hedera, Polygon, and Binance Smart Chain. Stader has more than 100,000 users worldwide, according to its website.

Liquid staking allows users to exchange staked coins for liquid tokens that represent staked assets. These liquid tokens can then be traded, used in decentralized finance protocols, and redeemed for the original staked assets.

The recent rally of the SD token corresponds to the stabilization of assets in its ecosystem. Data from DeFi Llama shows that the total value locked in the Stader ecosystem began to decline after reaching $778 million on March 14, falling to $381 million in September and then rising to $463 million.

This rebound indicates potential further growth as cryptocurrencies continue to gain momentum. For example, analyst Randy, who has more than 318,000 followers on X, predicted that Ethereum could rise to $5,000 in the coming months.

A notable risk to Stader price is the maximum supply of 120 million tokens, with the current circulating supply being 40.76 million. The platform issues 1.38 million SD tokens per month, which could lead to further dilution.

How high can the Stader price rise? Stader price chart | Source: crypto.news

The Stader token also experienced a technical break. As shown on the chart, SD rose after forming a falling wedge formation, a common bullish indicator. Typically a breakout occurs when the pattern approaches its confluence.

Stader has broken above the 50-day and 200-day moving averages and is approaching the psychological $1 level. Additionally, the Relative Strength Index and the Stochastic Oscillator reached overbought levels, signaling an upward move.

Given these technicals, Stader crypto price could likely pull back and retest the bottom of the wedge pattern at $0.40, around 60% below its current level.