Lido DAO's Journey Toward a Potential $1.17 Mark, Fueled by a Daily Gain of 17%
Lido DAO's price has experienced a significant 17% surge, reaching a local high of $1.119, following a week of strong buying pressure, whale activity, rising futures interest, and increased trading volume.
The increased participation in the futures market is evident as Lido DAO's Open Interest (OI) jumped 32.2% to $225 million, and Derivatives Volume soared 199% to $537.8 million. This surge indicates higher capital inflow into the cryptocurrency market.
Investors have been aggressively buying LDO, as indicated by a positive Buy Sell Delta for five consecutive days. Notable whale purchases, including a $556k buy, have lifted market confidence. The trading volume surged dramatically, signaling increased on-chain and market activity.
The Total Value Locked (TVL) in Lido DAO grew sharply, reflecting investor confidence as more capital is locked in the protocol’s staking solutions. At press time, the TVL stands at about $38.17-$38.4 billion.
Open interest and positive funding rates in derivatives markets further suggest bullish positioning by traders. However, ongoing profit-taking and shorting pose near-term risks that could lead to price retracement if selling intensifies. A drop approaching the 50-day moving average around $0.89 is possible if this pressure rises.
Data from CryptoQuant shows that Lido DAO's Futures Average Order Size has consistently reflected large whale trades over the past week. At the time of writing, the Long Short Ratio for LDO is 0.9569, indicating a higher demand for short positions compared to longs.
If selling pressure continues to rise, LDO could pull back to the short-term 50MA at $0.891. However, if buyers can hold at the current speed, Lido Dao could reclaim $1.17 and target $1.27 resistance.
The Relative Strength Index (RSI) for LDO has made a bullish crossover, reaching 60 at press time, signaling strong upward momentum. At present, LDO sees 6.32 million in Buy Volume compared to 5.6 million in sell volume.
Lido whales have re-entered the market after staying on the sidelines through July, likely taking long or short positions. On the 8th of August, LDO's Spot Netflow surged to a 3-week high of $3.36 million, suggesting a high inflow volume relative to outflows.
The surge in OI and Volume in Lido DAO's futures market suggests increased involvement from major players. The surge in LDO's price was accompanied by a 232% jump in volume, reaching $225 million.
However, these gains are not without threats. Profit-taking by traders who may sell to realize short-term gains creates downward pressure. Increasing short positions could trigger a pullback if selling intensifies. General crypto market volatility remains a cautionary factor.
In summary, LDO’s recent price jump is fueled by strong institutional and retail accumulation backed by growing TVL and market interest. However, ongoing profit-taking and shorting pose near-term risks that could lead to price retracement if selling intensifies.
The rise in Lido DAO's price could be attributed to increased activity in the crypto market, as indicated by the surge in open interest and volume in its futures market. This surge in volume was accompanied by a 232% increase, reaching $225 million. Some major players, such as whales, have re-entered the market and are taking long or short positions, as demonstrated by LDO's Spot Netflow surging to a 3-week high of $3.36 million. Simultaneously, large whale trades are reflected in Lido DAO's Futures Average Order Size, as shown by data from CryptoQuant. Despite the bullish expectations, near-term risks persist due to profit-taking by traders and increasing short positions, which could trigger a pullback if selling intensifies.
