Altcoins
LDO jumped 5.64%, defying market trends
- LDO has surged 5.64% over the past seven days, defying all market odds.
- A wave of partnerships, adoptions and integrations has reinforced the positive market sentiment of LDO.
The cryptocurrency market has seen significant declines recently, with Bitcoin [BTC] Bitcoin price fell 7.68% to $60,782. The massive drop in Bitcoin price 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 trading volume to $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 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 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 trading volume.
Likewise, partnerships with crucial DeFi platforms supporting assets staked 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 at 9:30 PM on June 27th.”
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.
The increase in volume indicated higher buying interest and confidence in the asset.
Source: Coinglass
Likewise, LDO’s RSI of 57, up from 46 over the past seven days, showed sustained upward movements.
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.
The increase in open interest shows that buyers are opening new positions while holding their existing positions, in the hopes of selling at a higher price in the future.
Realistic or not, here it 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 at around $2.624. However, if the market undergoes a correction, the token will decline to the vital support level of around $2.048.