LDO Registers 7% Gains On Weekly Chart, More Gains Ahead?
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.
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
Source: NewsBTC.com
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