LDO soared by 5.64% in the past seven days, going against all possible market expectations. The wave of collaboration, adoption, and integration has propelled positive market sentiment for LDO.
The cryptocurrency market has recently experienced a significant decline, with Bitcoin [BTC] dropping by 7.68% to $60,782. The sharp decline in BTC has resulted in significant losses for most altcoins.
However, Lido DAO (LDO) has seen a massive surge, rising by 5.64% in the past seven days. As of the time of writing, LDO’s trading price is $2.39, with a 0.54% increase in the past 24 hours.
Meanwhile, the trading volume for LDO has grown by 26.75%, reaching $190 million.
The surge in LDO has left everyone wondering what is driving these gains while the market continues to decline.
What is fueling the surge of LDO?
Due to various factors, LDO’s recent surge continues to defy market trends. Firstly, it is due to the development of ETH 2.0.
LDO continues to provide a service that allows users to hold Ethereum [ETH] tokens without running their own validator nodes.
This unique aspect of ETH has increased staking activity, thus driving the trading volume for Lido DAO.
Similarly, partnerships with key DeFi platforms that support collateralized assets, such as Mellow Finance, have played a significant role in the market resilience of Lido DAO.
Coinbase International Exchange announced on their X (formerly Twitter) page,
“@coinbaseibttch will add support for atlayer, Lido Dao, and Pendle perpetual futures on Coinbase International Exchange and Coinbase Advanced… The market will go live on June 27th at 9:30 pm.”
These developments, partnerships, and integrations have played a crucial role in enhancing its utility and expanding the ecosystem, contributing to Lido DAO’s current recovery capabilities.
Market Outlook and Sentiment for LDO
The adoption, collaboration, and partnerships in DeFi have greatly influenced market sentiment for LDO.
Analysis by AMBCrypto on Coinglass shows that Lido DAO’s trading volume in the past seven days has increased from a low point of $108 million to a high point of $147 million.
The surge in trading volume indicates increased interest and confidence in the asset.
Similarly, LDO’s RSI is 57, an increase from 46 in the past seven days, indicating a continued upward trend.
RSI shows that bullish sentiment has led to increased buying pressure, resulting in price increases on the daily and weekly charts.
LDO’s positive Chaikin Money Flow (CMF) is 0.12, indicating dominant buying pressure at the time of writing, which is a bullish signal.
Combined with higher trading volume, CMF suggests that Lido DAO is experiencing an accumulation phase, driving the price upwards, and this trend is expected to continue.
Lastly, analysis by AMBCrypto on Santiment reveals a significant surge in public interest for Lido DAO. In the past seven days, LDO’s open interest has increased from a low point of $51 million to $68 million.
The rise in open contracts indicates that buyers are opening new positions while holding existing ones, hoping to sell at higher prices in the future.
Regardless of the reality, the following is the market capitalization of LDO in BTC terms.
Therefore, market sentiment remains bullish, with long holders continuously accumulating and selling for profits.
With the ongoing bullish momentum, LDO may attempt to retest its resistance level around $2.624. However, if the market experiences a pullback, the token could fall to the significant support level of around $2.048.