Lido DAO (LDO) has maintained an ascending channel over the past month. After three days of weakness, the altcoin recovered and continued its rise.
LDO maintained the $0.35 support level and reached a two-month high of $0.40. At press time, LDO was trading around $0.39 after gaining 13% in 24 hours.
Meanwhile, Trading Volume increased by 108% to $61.1 million. Market Cap also increased by 13%, returning LDO to the top 100.
Increased Trading Volume and Market Cap are indicative of stronger participation and new capital entering the market.
Did the executive vote help the LDO?
A recently concluded management vote coincided with strong market demand. The proposal received unanimous support from participating voters, with 24.4 million LDOs in support.
The upgrades proposed new versions of the Community Staking Module and Lido’s Curated Module. They aimed to improve the protocol’s staking infrastructure and validator management.
The voting period attracted more market attention, which may have supported renewed demand for LDO.
Are investors expecting more earnings?
Speculators remained active throughout the voting period and after the conclusion of the vote. Last day, Open Interest increased by 8% to $86.3 million. Derivative Transaction Volume also increased by 74% to 105 million dollars.
Rising Open Interest and Derivatives Volume attracted greater participation as investors opened additional leveraged positions. Long/Short Ratios on Binance and OKX remained above one. Binance’s Top Trader Long/Short Ratio increased to 2.0.
However, the broader Long/Short Ratio remained below one, indicating that bearish sentiment still prevailed overall.
Are the Whales selling out the rally?
Interestingly, the whales are back after being less active for more than a week. CryptoQuant’s Spot Average Order Size showed whale-sized transactions.
Orders reappeared after LDO broke through $0.38. But measurement alone could not determine whether whales were bought or sold.
In contrast, Spot Netflow turned positive on July 21 after two consecutive negative readings.
At the time of writing, Spot Netflow was around $27,000, indicating that currency inflows exceeded outflows. While this doesn’t prove that whales are making these deposits, it could increase selling pressure.
If larger shareholders sell during an uptrend, they could weaken LDO’s market structure and trigger a pullback.
Can LDO hold $0.40?
LDO continued its strong upward momentum as demand recovered. The Positive Directional Indicator (+DI) rose to 41, while the ADX reached 59.
Rising +DI indicated bullish direction, while rising ADX confirmed the strength of the trend.
If demand continues, LDO could reclaim $0.40 and target the $0.46 resistance level. However, stronger whale selling could push the altcoin towards the $0.35 support level.
Final Summary
- LDO rose 13% to a two-month high of $0.40 before falling to $0.39.
- Rising activity supported LDO, but positive Spot Net flow brought renewed selling risk.
