Aaryamann Shrivastava
FXStreet
- Lido DAO price took a slight hit over the past 24 hours to decline by around 10% to trade at $2.15.
- Investors' supply of over $300 million worth of LDO awaits a trigger for profits at $2.50.
- The altcoin shares a negative correlation of -0.09 to Bitcoin that might prove to be in its favor.
Lido DAO price is following the rest of the market due to the regulatory events that transpired in the last few days. However, the DeFi token is generally unlikely to pursue the path set by any other cryptocurrencies, including the likes of Bitcoin. This might play in favor of LDO.
Lido DAO price had a setback
Lido DAO price did take a 10% hit in the past 24 hours, but a recovery may not be far away for the cryptocurrency. The reason behind this is that the Moving Average Convergence Divergence (MACD) indicator is the only instance in some of the top cryptocurrencies not to observe a bearish crossover. The MACD line (blue) is still keeping above the signal line (red), which suggests that there is some bullishness still left for the altcoin.
LDO/USD 1-day chart
This is crucial for Lido DAO price as the liquid staking protocol token needs to recover soon in order to flip its losses into support again. A demand wall for more than 146 million LDO is present at $2.35, the average price at which they were purchased. In order to ascertain absolute profits, though, the price needs to touch $2.50, which is the upper limit of the demand wall range by noting a 15% rise.
Lido DAO GIOM
The resultant profits would be worth over $300 million for about 5.55k addresses and also act as a trigger for further increases in price. At the time of writing, Lido DAO holders stand to be some of the most profitable investors, with more than 45% of all addresses safe from losses. This figure would further increase once the demand wall is also breached.
Lido DAO investors in profit
Bitcoin might prove to be of huge help here as LDO shares a negative correlation with the biggest cryptocurrency in the world. Even before the 10% crash in the case of Lido DAO price, the coin was trending upwards while BTC was facing red candlesticks over the week. Thus the negative -0.09 correlation might help the altcoin if Bitcoin price was to slip on the charts.
Lido DAO correlation with Bitcoin
However, should BTC trend upwards, the resulting price movement for LDO may not be as helpful in achieving profits as one may expect.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Shiba Inu price stagnancy brings investors’ losses to a 28-month high
Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.
LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier
Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.
THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range
THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27. RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.
Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability
Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.
Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.