Anticipating Lido's [LDO] trajectory as retail investors encounter profit-seeking whales
Lido Finance (LDO) has seen a significant surge in its value, reaching a three-week high of $1.35, marking a 13.11% increase. This growth has resulted in a notable increase in the fees associated with LDO staking activities, which have jumped by 7% to $89 million.
The spot market has recorded a positive delta for three consecutive days, suggesting sustained buying pressure. Coinalyze reports that the Buy Volume for LDO was higher than the Sell Volume over this period, further indicating strong investor interest.
However, the momentum may be facing challenges. Whales have accelerated their selling activity, offloading 939.3k tokens and acquiring 822k tokens, resulting in a negative balance change of -116k. This selling pressure was created after LDO hit $1.30.
If the bullish trend fades, LDO may find support at $1.149, where its Parabolic STOCH sits. Yet, if the bulls hold, LDO will attempt to reclaim the $1.4 resistance. However, it needs a daily close above $1.33 to maintain a bullish outlook.
Retail investors have been instrumental in defending the key support at $1.1, resulting in a positive delta for three consecutive days. The altcoin's Stochastic RSI has surged to 72 after making a bullish crossover, reflecting strong upward momentum.
The altcoin's volume surged 105% to $152 million, and LDO's staked assets rose from $37.5 billion to $38.842 billion within two weeks.
Despite these positive developments, Lido Finance (LDO) may face potential challenges due to increasing competition as major companies develop their own blockchains, which could reduce Ethereum's dominance—the main network LDO operates on—and thus indirectly affect Lido. Additionally, the broader crypto market volatility and risks typical for altcoins could impact LDO's momentum.
At press time, Lido Dao had a negative Spot Netflow of -$1.15 million, with an outflow of $26.53 million compared to $25.38 million in inflows. This indicates a slight outflow of LDO from the market.
No specific information was provided regarding Avalanche powers South Korea's first Won-backed stablecoin or its potential impact on LDO.
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