LDO soared by 5.64% in the past seven days, defying all odds in the market. The wave of collaboration, adoption, and integration has fueled positive market sentiment for LDO.
The cryptocurrency market has recently seen a significant downturn, with Bitcoin [BTC] dropping by 7.68% to $60,782. BTC’s sharp decline has led to significant losses for most altcoins.
However, Lido DAO (LDO) has experienced a massive surge, rising by 5.64% in the past seven days. At the time of writing, LDO’s trading price is $2.39, up by 0.54% in the last 24 hours.
At the same time, LDO’s trading volume has increased by 26.75%, reaching $190 million.
The surge in LDO has left everyone wondering what is driving these gains amid the sustained market downturn.
What is driving the sharp increase in LDO?
For various reasons, LDO’s recent surge continues to challenge market trends. First, with the development of ETH 2.0.
LDO continues to provide services, allowing users to hold Ethereum [ETH] tokens without running their own validator nodes.
This unique aspect of ETH has increased staking activities, thus driving the trading volume of Lido DAO.
Similarly, partnerships with key DeFi platforms that support staked assets as collateral, such as Mellow Finance, have played a significant role in Lido DAO’s market resilience.
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… Trading will start at 9:30 p.m. on June 27.”
These developments, partnerships, and integrations have played a crucial role in enhancing its utility and expanding the ecosystem, contributing to Lido DAO’s current resilience.
Market outlook and sentiment for LDO
The adoption, collaboration, and partnerships in DeFi have had a significant impact on LDO’s market sentiment.
AMBCypto’s analysis of Coinglass shows that Lido DAO’s trading volume in the past seven days has increased from a low of $108 million to a high 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 sustained 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 buying pressure dominance at the time of writing, a bullish signal.
Combined with higher trading volume, CMF suggests that Lido DAO is experiencing an accumulation phase, driving price increases, which is expected to continue.
Finally, AMBCrypto’s analysis of Santiment shows a significant surge in public interest for Lido DAO. In the past seven days, LDO’s open interest has increased from a low of $51 million to $68 million.
The rise in open interest indicates that buyers are opening new positions while holding existing ones, hoping to sell at higher prices in the future.
Regardless of reality, here is LDO’s market value in BTC terms.
Therefore, market sentiment remains bullish, with long holders continuing to accumulate profits from selling.
With the ongoing bullish momentum, LDO may attempt to retest its resistance level at around $2.624. However, if the market experiences a pullback, the token could fall to the important support level of around $2.048.
