Lido Finance: What’s on the cards for LDO after this long-term investor quits

  • The LDO may be in trouble because this investor of two years is selling some of his LDO holdings
  • The LDO rally was able to reverse as it was overbought

Some of the cryptocurrency markets that rebounded after Christmas ended up in a standstill, with… Lido Finance [LDO] Record a 10% increase in the last 24 hours. As a result of the rise of long-term investors Ethereum [ETH] Staking Protocol decided to sell some of his holdings.

Read Lido Finance [LDO] predict the price 2023-2024

According to Lookonchain, this private investor has owned LDO since December 2020. Around this period, the user has accumulated about 25 million LDO tokens.

However, these tokens were not sold until some portions of the wallet disappeared in January 2022. The last token issued was 790k, valued at $850,040 when sold.

Revenue is going down but the system is still alive

Besides LDO’s impressive showing, there were downsides to the state of the protocol. According to Token Terminal, the revenue recorded by Lido in the last 30 days is far from impressive. At the time of this writing it is 30 days Revenues Where 29.42% are falling.

On the bright side, the decline in revenue couldn’t destroy the Lido network. This was due to the developers’ involvement in the ecosystem. At the time of publication, the blockchain aggregator and dAPP show up Active developers using the Lido protocol increased by 9.43%.

Source: Token Terminal

with LDO change hands At $1.07 and a volume increase of 67.50%, more upside could be seen. Indicators according to the Directional Movement Index (DMI) showed rising levels rising on the positive outlook (green). At 46.35, the first position LDO does not seem to be pulling its bullish trajectory, compared to -DMI (red) at 7.48.

As for the Average Directional Index (ADX), there was strong support for +DMI. This is because the trend was above 25. Since ADX (yellow) followed the +DMI trend, short-term investors may want to consider this a long position.

how many You can get LDOs for as little as $1?

However, the chance of a market downturn is still high. One of the indicators that could lead LDO to a price reversal was the Relative Strength Index (RSI). At the time of publication, the RSI was 81.91. With such a high position, LDO was clearly oversold. And temporarily, it may be about to withdraw.

LDO price action

Source: TradingView

Fixed TVL

The Lido, meanwhile, let out an underperformance according to its total value locked (TVL). According to TVL multi-chain dashboard, Devi LamaLido’s TVL rose 1.33% to $5.98 billion.

Of course, the change in one day was mostly insignificant. Therefore, the sum of all assets deposited in dApps under the Lido chain was not necessarily impressive. However, the validity of the protocol appeared to be in good shape.

Lido Finance Total Value Locked

Source: DeFi Llama

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