Lido DAO (LDO) Sees 17% Surge Amid Whale Activity, But Profit-Taking Risks Potential Pullback

• LDO’s price increased to $1.119, backed by a 232% jump in trading volume.

• Market cap rose to $987 million, reflecting heightened investor interest.

• Whale activity in futures markets indicates strong market participation.

Lido DAO (LDO) has surged 17% amid strong buying activity, but profit-taking poses risks to its recent gains. Explore the details.

What is Lido DAO (LDO)?

Lido DAO (LDO) is a decentralized finance (DeFi) protocol that allows users to stake their assets while maintaining liquidity. Recently, LDO has experienced significant price movements due to increased market activity.

Why Did LDO Prices Surge?

The recent surge in LDO prices can be attributed to a combination of whale activity and increased futures trading. Data indicates that LDO has recorded positive Buy Sell Delta for five consecutive days, signaling strong accumulation.

Frequently Asked Questions

What is the current price of Lido DAO (LDO)?

As of now, Lido DAO (LDO) is trading at approximately $1.110, following a recent surge.

How does whale activity impact LDO prices?

Whale activity can significantly influence LDO prices by creating increased demand and volatility in the market.

Key Takeaways

• LDO surged 17%: Driven by strong buying and whale activity.
• Market Cap Growth: Increased to $987 million, indicating rising investor interest.
• Profit-Taking Risks: Selling pressure may pull prices back to $0.891.

Conclusion

The recent surge in Lido DAO (LDO) reflects strong market interest, but profit-taking poses a risk to its upward momentum. Investors should monitor market conditions closely to navigate potential price fluctuations.

• Lido DAO (LDO) surged 17% amid strong buying, whale activity, and rising futures interest.

• Profit-taking and short positions threaten gains, with potential pullback to $0.891 if selling intensifies.

• Lido DAO’s market cap surged 16.27% to $987 million, reflecting increased capital inflow.

Lido DAO (LDO) has surged 17% amid strong buying activity, but profit-taking poses risks to its recent gains. Explore the details.

LDO Buyers Make a Comeback

Significantly, when LDO reached a local bottom a week ago, investors rushed to buy the dip. According to Coinalyze, LDO has recorded positive Buy Sell Delta for five consecutive days.

At the time of writing, LDO saw 6.32 million in Buy Volume compared to 5.6 million in sell volume. For that reason, the altcoin saw a positive market delta of 721K, a clear sign of aggressive spot accumulation.

Typically, when an asset records sustained buying pressure, it leads to higher prices, which explains recent LDO gains.

Whales Flock into Futures but…

After staying on the sidelines through July, LDO whales re-entered the market as prices dropped to a local low of $0.85 last week. This dip likely prompted them to buy in and prepare for the next price move.

Data from CryptoQuant showed that Lido DAO’s Futures Average Order Size has consistently reflected large whale trades over the past week, indicating strong market involvement from major players.

In this case, they are either taking long or short positions. According to CoinGlass, Lido DAO’s Open Interest (OI) jumped 32.2% to $225 million while Derivatives Volume soared 199% to $537.8 million.

When OI and Volume surge in tandem, it reflects increased participation in the futures and higher capital inflow.

Surprisingly, despite rising participation, the altcoin’s Long Short Ratio failed to flip one and sat around 0.9569, at press time. When this ratio holds below 1, it suggests a higher demand for short positions compared to longs.

Short positions accounted for 53% while longs accounted for 46.9% of the total Futures accounts. Based on this, we can conclude that these whales rushed into the market to take short positions.

Profit Takers Jump to Spoil the Party

Unsurprisingly, as prices jumped from the recent dip, investors decided to realize profit. According to CoinGlass, LDO’s Spot Netflow turned positive and has held within this territory for the past 4 days.

On the 8th of August, LDO’s Netflow surged to a 3-week high of $3.36 million. Such a massive uptick in Netflow suggests that exchanges recorded a high inflow volume relative to outflows.

Typically, a higher inflow implies that holders are aggressively selling. Historically, increased profit taking has preceded lower prices as downward pressure on an asset mounts.

Can LDO Bulls Hold On?

According to COINOTAG’s analysis, the token soared as buyers, both retail and whales, rushed into the market to buy the dip. As a result, the altcoin’s Relative Strength Index (RSI) made a bullish crossover, reaching 60 at press time.

At the same time, LDO flipped long-term MA for the first time in ten days, signaling strong upward momentum.

When these indicators are in such a manner, they signal a potential for the current trend to continue. Therefore, if buyers can hold at the current speed, Lido DAO could reclaim $1.17 and target $1.27 resistance.

However, as profit takers become aggressive, they pose a significant threat to recent gains. If selling pressure continues to rise, LDO could pull back to the short-term 50MA at $0.891.