- LDO has surged by 5.64% in the last seven days, defying all market odds.
- A wave of partnerships, adoptions, and integration have driven LDO’s positive market sentiment.
The cryptocurrency market has recently witnessed considerable declines, with Bitcoin [BTC] dropping 7.68% to $60,782. The massive drop in BTC has caused most altcoins to suffer significant losses.
However, Lido DAO [LDO] has witnessed massive gains, with a 5.64% surge in seven days. LDO was trading at $2.39 at press time, a 0.54% rise in 24 hrs.
At the same time, LDO has experienced a 26.75% increase in trading volume to $190M.
LDO’s surge has left everyone wondering what’s driving these gains while the market continues to see red.
What’s driving LDO’s surge?
LDO continued to defy market trends with its recent gains because of various 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, thus driving Lido DAO’s trading volume.
Equally, partnerships with crucial DeFi platforms supporting 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 (formerly Twitter) page,
“@coinbaseibtEtch will add support for atlayer, Lido Dao, and Pendle perpetual futures on coinbase international exchange and coinbase advanced…. the markets will begin on 9.30 pm 27 June.”
These developments, partnerships, and integration have played a vital role in Lido DAO’s current resilience by enhancing its utility and expanding the ecosystem.
LDO’s market outlook and sentiment
DeFi adoption, partnerships, and collaborations have considerably impacted LDO’s market sentiment.
AMBCypto analysis of Coinglass showed that Lido DAO’s trading volume in the last seven days has increased from a low of $108M to a high of $147M.
The surge in volume indicated higher buying interest and confidence in the asset.
Source: Coinglass
Equally, LDO’s RSI of 57, an increase from 46 in the last seven days, showed sustained upward movements.
The RSI showed increased buying pressure resulting from bullish market sentiment, leading to higher prices as witnessed on daily and weekly charts.
Source: TradingView
LDO’s positive Chaikin Money Flow (CMF) at 0.12 showed that the 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 which was driving prices up and the trend should continue.
Source: Tradingview
Finally, AMBCrypto’s analysis of Santiment showed that Lido DAO’s Open Interest surged massively. In the last seven days, LDO experienced an increase in Open Interest from a low of $51M to a higher of $68M.
The rise in Open Interest shows that buyers are opening new positions while holding to existing positions, hoping to sell at a higher price in the future.
Realistic or not, here’s LDO’s market cap in BTC’s terms
Therefore, the market sentiment remains bullish, with long holders accumulating to sell in profit.
Source: Santiment
With continued bullish momentum, LDO can attempt to retest its resistance level at around $2.624. However, if the market experiences correction, the token will decline to the vital support level of around $2.048.
