Altcoins
LDO surged 5.64%, defying market trends
- LDO has jumped 5.64% over the past seven days, defying all market predictions.
- A wave of partnerships, adoptions and integrations has reinforced the positive market sentiment of LDO.
The cryptocurrency market has seen considerable declines recently, with Bitcoin [BTC] down 7.68% to $60,782. The massive drop in BTC has led to significant losses for most altcoins.
However, Lido DAO [LDO] saw massive gains, rising 5.64% in seven days. LDO was trading at $2.39 at press time, up 0.54% in 24 hours.
At the same time, LDO saw a 26.75% increase in its transaction volume to $190 million.
The LDO surge has left everyone wondering what is driving these gains as the market continues to see in the red.
What is driving the rise of LDO?
LDO has continued to defy market trends with its recent gains due to a variety of factors. First, with the development of ETH 2.0 staking.
LDO continues to offer services that allow users to bet their Ethereum [ETH] tokens without running their own validator nodes.
This unique aspect of ETH has increased staking activities, thereby increasing the trading volume of Lido DAO.
Likewise, partnerships with crucial DeFi platforms supporting assets pledged as collateral, such as Mellow Finance, have played a considerable role in the resilience of the Lido DAO market.
Coinbase International Exchange announced that on their X page (formerly Twitter),
“@coinbaseibtEtch will add support for atlayer, Lido Dao and Pendle perpetual futures contracts on Coinbase International Exchange and Coinbase Advanced…. markets will begin on June 27th at 9:30pm.
These developments, partnerships and integrations have played a vital role in the current resilience of the Lido DAO by improving its utility and expanding the ecosystem.
LDO Market Outlook and Sentiment
DeFi adoption, partnerships, and collaborations have had a huge impact on LDO market sentiment.
Coinglass’ AMBCypto analysis showed that Lido DAO’s trading volume over the past seven days increased from a low of $108 million to a high of $147 million.
Increased volume indicates increased buying interest and increased confidence in the asset.
Source: Coinglass
Similarly, LDO’s RSI of 57, up from 46 over the past seven days, showed sustained upward moves.
The RSI showed increased buying pressure resulting from bullish market sentiment, leading to higher prices as seen on the daily and weekly charts.
Source: TradingView
LDO’s positive Chaikin Money Flow (CMF) at 0.12 showed that buying pressure was dominant at press time, which was a bullish signal.
Combined with higher trading volume, CMF indicated that Lido DAO was experiencing an accumulation phase that was driving prices higher and the trend was expected to continue.
Source: Tradingview
Finally, AMBCrypto’s analysis on Santiment showed that Lido DAO’s open interest increased massively. Over the past seven days, LDO has seen an increase in open interest from a low of $51 million to a high of $68 million.
Rising Open Interest shows that buyers are opening new positions while holding existing positions, in the hopes of selling at a higher price in the future.
Realistic or not, here it is Market capitalization of LDO in terms of BTC
Therefore, market sentiment remains bullish, with long position holders accumulating to sell at a profit.
Source: Santiment
With continued bullish momentum, LDO may attempt to retest its resistance level around $2.624. However, if the market undergoes a correction, the token will decline to the vital support level around $2.048.