Lido Dao Market Trend Goes Against Altcoin Trends: Will LDO Continue Its Uptrend?
Contributor
- LDO is up 5.64% in the last seven days, against all market expectations.
- A wave of partnerships, acquisitions, and integrations have driven positive market sentiment on LDO.
The cryptocurrency market has seen significant declines recently, with Bitcoin [BTC] falling 7.68% to $60,782. BTC’s massive drop has led to significant losses for most altcoins.
Lido DAO [LDO] however, has seen massive gains with a 5.64% increase in seven days. LDO was trading at $2.39 at press time, up 0.54% in 24 hours.
At the same time, LDO has seen a 26.75% increase in trading volume to $190 million.
LDO’s rise has left everyone wondering what is driving these gains while the market remains in the red.
What is driving LDO’s rise?
LDO continued to defy market trends with its recent gains due to several factors. First, with the development of ETH 2.0 staking.
LDO continues to offer services that allow users to stake their Ethereum [ETH] tokens without running their own validator nodes.
This unique aspect of ETH has increased staking activities, thereby boosting Lido DAO’s trading volume.
Likewise, partnerships with major DeFi platforms that support staked assets as collateral, such as Mellow Finance, have played a significant role in Lido DAO’s market stability.
Coinbase International Exchange announced on its X page (formerly Twitter) that
“@coinbaseibtEtch will add support for Atlayer, Lido Dao, and Pendle Perpetual Futures on Coinbase International Exchange and Coinbase Advanced…. markets will begin on June 27th at 9:30pm.”
These developments, partnerships, and integration have played a critical role in Lido DAO’s current resilience by enhancing its utility and expanding the ecosystem.
Market outlook and sentiment for LDO
The launch of DeFi, partnerships, and collaborations have significantly impacted the market sentiment for LDO.
AMBCypto’s analysis of Coinglass showed that Lido DAO’s trading volume increased from a low of $108 million to a high of $147 million over the past seven days.
The increase in volume indicates greater buying interest and confidence in the asset.
Likewise, LDO’s RSI of 57, up from 46 over the past seven days, showed sustained bullish movements.
The RSI showed increased buying pressure as a result of the optimistic market sentiment, resulting in higher prices, as seen in the daily and weekly charts.
LDO’s positive Chaikin Money Flow (CMF) of 0.12 showed that buying pressure was dominant at press time, which was a bullish signal.
Along with higher trading volume, the CMF suggested that Lido DAO was going through an accumulation phase that was driving prices higher, and this trend should continue.
AskFX’s analysis of Santiment showed that Lido DAO’s open interest was increasing massively. Over the past seven days, LDO experienced an increase in open interest from a low of $51 million to a high of $68 million.
The increase in open interest shows that buyers are opening new positions and holding existing positions in the hope of selling at a higher price in the future.
Whether realistic or not, here is LDO’s market cap in BTC terms
So, market sentiment remains bullish, and long holders are accumulating to sell at a profit.
If the upward momentum continues, LDO may attempt to retest its resistance level at around $2.624. However, if a market correction occurs, the token will fall to the important support level of around $2,048.
