Lido DAO Witnesses Price Surge Following $4.9 Million Whale Transaction
In the last three days, Lido DAO [LDO] has experienced notable advancements in its price trajectory, skyrocketing from a low of $1.55 to a peak of $2.00.
After reaching $2, Lido DAO encountered a minor pullback, settling at $1.84 at the time of writing. This represents a 5.67% increase on a daily basis, along with gains of 2.45% in the weekly view and 8.49% monthly.
The sustained increase in Lido DAO’s price has fostered optimism among investors on the back of positive sentiment, particularly noticeable within the whale community, who have initiated a phase of accumulation.
Rise in Whale Activity for Lido DAO
According to SpotOnChain, a dormant whale associated with Lido DAO has re-entered the market after a year, injecting $5 million by amassing 2.72 million LDO tokens valued at $4.9 million within a day.
When significant whales like this rejoin the market and augment their holdings, it signifies a resurgence in market confidence and bullish trends.
The broader LDO market has witnessed a surge in whale activity, evident through a notable increase in large holders’ inflow. This inflow has surged from 12 million to 19 million tokens, depicting a scenario where more capital is flowing in rather than out.
Consequently, the netflow of large holders has remained positive over the last seven days, showcasing their trust in the market and their decision to accumulate assets.
Impact of Whale Activity on LDO Charts
As anticipated, the heightened whale activity has exerted a positive influence on LDO, with increased demand from whales driving prices upwards due to heightened buying pressure.
This escalating demand is validated by a bullish crossover observed in LDO’s Stoch RSI, indicating that buyers have taken command of the market while sellers have lost momentum.
Such a scenario indicates a bullish sentiment, affirming that investors are actively participating in buying activities.
This shift towards a bullish market sentiment is further supported by the positive turn in LDO’s Weighted Sentiment two days ago after a predominantly negative trend throughout the week.
Moreover, the rising demand for long positions can be observed through a favorable Funding Rate spanning all exchanges, demonstrating a robust appetite for long positions.
In the course of the week, LDO’s Funding Rate has consistently stayed positive, reflecting substantial demand for long positions.
Lido DAO’s MVRV Long/Short Difference has transitioned into a positive zone from a negative position earlier in the week.
An escalating MVRV Long/Short Difference signifies an expanding profit margin for long-term holders as they continue to hold, signaling a robust market sentiment as they anticipate further profit growth.
While whales actively accumulate LDO, the overall market sentiment remains bullish. With all market participants displaying optimism, Lido DAO is well-positioned to see further advancement in its price trajectory.
If the current trend holds, LDO is likely to reclaim the $2 mark and possibly aim for the resistance level at $2.1. However, should the trend reverse, a correction may follow, driving the altcoin down to $1.65.