Altcoins
LDO rose 5.64% defying market trends
- LDO has risen 5.64% over the past seven days, defying all market forecasts.
- A wave of partnerships, adoptions, and integrations have fueled positive market sentiment for LDO.
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] has seen massive gains, up 5.64% in seven days. At the time of writing, LDO was trading at $2.39, up 0.54% 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 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 its own validation nodes.
This unique aspect of ETH has increased staking activities, thus driving 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 start June 27 at 9:30 PM.”
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 had a significant impact on 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 increased buying interest and confidence in the asset.
Source: Coinglass
Likewise, the LDO’s RSI of 57, up from 46 over the past seven days, has shown sustained bullish movements.
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 positive LDO 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 capitalization in terms of BTC
Therefore, market sentiment remains bullish, with long 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.