LDO Registers 7% Gains On Weekly Chart, More Gains Ahead?
07 April 2023 - 5:00PM
NEWSBTC
While top cryptocurrencies are trading in the red zone, with most
giving up their past week’s gains, Lido DAO (LDO) has held on to
its gains. The token maintains an over 7% price increase on the
weekly chart, reflecting its resilience against the ongoing bearish
trend. At press time, LDO is trading at $2.54, with a 24-hour
price increase of 0.45%. The token is among the few
cryptocurrencies holding parallel gains on the weekly and monthly
charts. LDO’s price has increased by more than 73% over the past
six months and retained 0.20% of its price gains in the last 30
days. Meanwhile, LDO’s two-week price gain stands at 9.8%.
Probable Reasons For LDO’s Price Action The cryptocurrency market
recovered briefly after several days of downturn caused by bearish
macroeconomic conditions. This recovery took Bitcoin above its
month-long resistance level to over $27,000 and rubbed off on most
coins. Cryptocurrencies like LDO sped up their price action with
impressive moves. Related Reading: Bitcoin Price Poised To Hit
$50,000, This Crypto Expert Predicts Moreover, the Fear and Greed
Index remains high at 64, indicating greed in the market as
investors scram to accumulate their favorite crypto assets. Even
though the global cryptocurrency market capitalization has dropped
by 0.35%, LDO isn’t backing down. In addition, the liquidity
efficiency (Total Value Locked) of LDO has been increasing since
April 5. According to data from a crypto tracking website
Stelareum, LDO’s TVL rose from $10.845 billion on April 4 to
$11.211 billion on April 5. This means LDO’s total value
locked (TVL) increased by $365.829 million, a 3.37% change within
24 hours. That’s not all. The TVL continued increasing, adding
another 1.39% from $11.211 billion to $11.478 billion on April 6.
However, today it is still flat without any notable change. An
April 3 tweet by Lido Finance confirms the above data.
According to the report, Lido’s TVL grew moderately over the last
week. The tweet cited the growing staking deposits across Ethereum,
Polygon, and Solana as a contributing factor. Notably, an increase
in TVL could rub off on the crypto prices. As a liquid
staking solution, an increase in liquidity efficiency is a positive
sign for LDO. That could be among the factors contributing to its
current price actions. LDO Price Outlook; Are More Gains Possible?
LDO recorded a steady increase on the daily chart despite slight
pullbacks. Also, LDO has found strong support at the 38.2 Fib level
($2.527) and is currently trading above it. LDO is trading above
its 200-day Simple Moving Average (SMA), a long-term bullish
sentiment reflecting the current trend. However, it is falling
below its 50-day SMA, indicating the market could lean toward a
bearish sentiment in the short term. Related Reading: ADA Records
Sharp Decline Despite Cardano’s First Oracle Integration The
Relative Strength Index (RSI) is at 55.15, in the neutral zone.
Also, the RSI is moving sideways, suggesting that LDO is currently
in a sideways trend. Following the daily chart outline, LDO will
likely see a short-term pullback before resuming its uptrend.
Featured image from Pixabay and chart from TradingView.com
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