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 integration have fueled positive LDO market sentiment.
The cryptocurrency market has recently witnessed notable declines, with Bitcoin [BTC] falling 7.68% to $60,782. BTC’s massive decline has caused significant losses to 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 LDO surge has everyone wondering what is driving these gains as the market continues to see red.
What is driving the LDO surge?
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 your own validator nodes.
This unique aspect of ETH has increased staking activity, thus increasing the trading volume of Lido DAO.
Likewise, partnerships with key DeFi platforms that support staked assets as collateral, such as Mellow Finance, have played a significant 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 9.30pm on June 27th.”
These developments, partnerships, and integrations have played a vital role in the current resilience of Lido DAO by improving its utility and expanding the ecosystem.
LDO Market Outlook and Sentiment
DeFi adoption, partnerships, and collaborations have significantly influenced LDO market sentiment.
AMBCypto analysis on Coinglass showed that Lido DAO trading volume over the past seven days increased from a low of $108 million to a high of $147 million.
The increase in volume indicated greater buying interest and confidence in the asset.
Source: Coinglass
Similarly, LDO’s RSI of 57, up from 46 in the past seven days, has shown sustained upward movement.
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
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 going through an accumulation phase that was driving prices higher and 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 stock holders accumulating to sell for profit.
Source: Santiment
With continued bullish momentum, LDO may attempt to retest its resistance level around $2,624. However, if the market corrects, the token will drop to the vital support level around $2,048.
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