Altcoin
LDO rose 5.64% defying market trends
- The LDO has risen by 5.64% in the last seven days, defying all market predictions.
- A wave of partnerships, adoptions, and integrations has driven positive market sentiment toward LDO.
The cryptocurrency market has recently witnessed notable declines, with Bitcoin [BTC] dropping 7.68% to $60,782. The massive drop in BTC has caused significant losses for most altcoins.
However, Lido DAO [LDO] witnessed huge gains, rising 5.64% in seven days. LDO was trading at $2.39 at press time, a 0.54% increase in 24 hours.
At the same time, LDO recorded a 26.75% increase in trading volume reaching $190 million.
The surge in LDO has left everyone wondering what is driving these gains as the market continues to see red.
What is driving the surge in LDOs?
LDO has 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 own Ethereal [ETH] token without running its own validation nodes.
This unique aspect of ETH has increased staking activities, thus increasing the trading volume of Lido DAO.
Likewise, partnerships with crucial DeFi platforms that support staked assets as collateral, such as Mellow Finance, have played a considerable role in Lido DAO’s market resilience.
Coinbase international exchange announced that on their X page (formerly Twitter),
“@coinbaseibtEtch will add support for atlayer, Lido Dao, and Pendle perpetual futures on coinbase international exchange and coinbase advanced… markets will begin at 9:30 PM ET on June 27.”
These developments, partnerships, and integrations have played a critical role in Lido DAO’s current resilience, enhancing its utility, and expanding its ecosystem.
LDO market outlook and sentiment
DeFi adoption, partnerships and collaborations have had a considerable impact on LDO market sentiment.
AMBCypto’s analysis on Coinglass 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 business.
Source: Coinglass
Similarly, LDO’s RSI of 57, up from 46 in the past seven days, has been showing sustained bullish moves.
The RSI has shown increased buying pressure resulting from bullish market sentiment, leading to higher prices, as witnessed 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 the time of writing, which was a bullish sign.
Combined with higher trading volume, CMF indicated that Lido DAO was going through an accumulation phase that was driving prices higher and that the trend is expected to continue.
Source: Tradingview
Finally, AMBCrypto’s Santiment analysis showed that Lido DAO’s Open Interest has increased massively. Over the past seven days, LDO has seen an increase in Open Interest from a low of $51M to a high of $68M.
The increase in Open Interest shows that buyers are opening new positions while holding existing ones, in the hope of selling at a higher price in the future.
Realistic or not, that’s it LDO Market Cap in BTC
Therefore, market sentiment remains bullish, with long holders accumulating to sell at profit.
Source: Santiment
With continued bullish momentum, LDO may attempt to retest its resistance level at around $2.624. However, if the market experiences a correction, the token will drop to the life support level of around $2.048.