Markets
LDO jumped 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] Bitcoin price fell 7.68% to $60,782. The massive fall in the price of Bitcoin has led to significant losses for most altcoins.
However, Lido DAO [LDO] LDO stock has seen 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 rise of the LDO has everyone wondering what is driving these gains as the market continues to see red.
What is driving the rise of LDO?
LDO has continued to defy market trends with its recent gains due to various factors. First of all, 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 increasing Lido DAO’s transaction volume.
Similarly, partnerships with crucial DeFi platforms that support pledged assets as collateral, such as Mellow Finance, have played a significant 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 at 9:30 PM on June 27th.”
These developments, partnerships and integrations have played a critical 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 has increased from a low of $108 million to a high of $147 million.
The increase in volume indicated higher buying interest and 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 the bullish market sentiment, leading to higher prices as seen on the daily and weekly charts.
Source: TradingView
The 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, the CMF indicated that Lido DAO was experiencing an accumulation phase that was driving prices higher and that the trend was expected to continue.
Source: Tradingview
Finally, AMBCrypto’s analysis of Santiment showed that Lido DAO’s open interest has increased significantly. 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, hoping to sell at a higher price in the future.
Realistic or not, here is LDO Market Cap in BTC
Market sentiment therefore remains bullish, with long position holders accumulating profits to sell them.
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.