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

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

Stader (SD), a major player in the liquid staking space, surged to $0.95, marking a 213% increase from its lowest point this month. This price rise has pushed its market cap to $37.90 million, with a fully diluted valuation of $111.7 million.

Stader’s assets are primarily in Ethereum, with around $426 million in ETH, and the rest in Hedera, Polygon, and Binance Smart Chain. According to its website, Stader has over 100,000 users worldwide.

Liquid staking allows users to swap staked coins for liquid tokens, which can be traded, used in decentralized finance (DeFi) protocols, or redeemed for the original staked assets.

The recent rally in the SD token price follows a stabilization of assets in its ecosystem. Data from DeFi Llama shows that the total value locked (TVL) in Stader’s ecosystem had been declining after peaking at $778 million on March 14, bottoming at $381 million in September, before rebounding to $463 million.

This recovery suggests potential for further growth as the broader cryptocurrency market regains momentum. Analyst Randy, with over 318,000 followers on X, predicts Ethereum could reach $5,000 in the coming months.

One notable risk for Stader’s price is its maximum supply of 120 million tokens, with 40.76 million currently in circulation. Stader releases 1.38 million SD tokens each month, which could lead to further dilution.

How high can Stader price jump?

The Stader token (SD) has also undergone a technical breakout, as evidenced by its price action on the chart. After forming a falling wedge pattern, a commonly bullish signal, SD surged upward. Typically, a breakout from such a pattern occurs as the price nears the pattern’s confluence point.

Stader has recently moved above both the 50-day and 200-day moving averages, and it is now approaching the psychological $1 mark. Furthermore, technical indicators like the Relative Strength Index (RSI) and the Stochastic Oscillator have shown signals of upward momentum, with both indicators reaching overbought levels.

Given these technical factors, there is a possibility that the Stader crypto price could experience a pullback and retest the lower boundary of the wedge pattern, which sits around $0.40—roughly 60% below its current price level.