- In the last 24 hours, a large amount of longs have closed in Lido DAO.
- Due to the continuous decline in the market cap, the market cap dominance of LDO has declined to 0.07%.
The price of Lido DAO crypto was trading with a decline of 6.1% in the last 24 hours from the time of writing. It resulted in a market cap of $1.585B, showing its strong market presence.
The value of the traded volume for the Lido DAO crypto in the last 24 hours was $71.672M, which has advanced by 11.01%.
The sentiment of the crypto is bullish, as per the Glassnode sentiment analysis tool, followed by social media buzz and positive news convergence. Also, the Spent Output Profit Ratio (SOPR) has been above 1, which shows that most of the tokens are sold in profit on average.
As per Intotheblock, only 22% of the holders of the LDO crypto are making a profit and the majority of the on-chain indicators are giving a bearish signal. The bid-ask volume imbalance is also bearish, resulting in -58% at press time.
Moreover, the Market Value to Realized Value(MVRV) ratio is balanced at press time. This means that the Lido DAO crypto price is fair compared to its realized value. It shows a stable market valuation in crypto.
From the lows of $4.625B in Total Value Locked of the Lido DAO in June 2022, the TVL has advanced to significant highs and is currently at $27.316B at press time. This shows a healthy and growing crypto ecosystem.
Decline in Outstanding Derivatives Contract: What Else Is Happening?
The open interest of the Lido DAO crypto has declined by 1.48% at press time. It shows a decline in the open positions of derivatives contracts over the last 24 hours.
This has led to huge profit bookings in crypto derivatives, as long liquidation is worth $364.5K compared to short liquidations of just $500.65.
Despite this, there has been an increase of 42% in the derivatives volume, which further indicates a surge in crypto volatility.
The OI-weighted funding rate of the crypto is also hovering around zero and entering negative territory. This shows that shorts are winning, and longs have to pay for shorts. That shows bearish dominance in the crypto price.
The long/short ratio of the crypto is also below 1, indicating a larger proportion of the market supporting bears.
LDO Crypto Technical Analysis Shows Signs of Strong Weakness: Should Buyers Step Back?
As of the present scenario of the daily chart of LDO crypto, the price is showing a strong bearish trend as the crypto has broken below the rising wedge pattern.
The crypto price further has declined by 15% over the last week. The oscillators like the RSI and the CCI show weakness in the crypto price trend.
LDO/USD Chart by TradingView
The moving averages also support the weakness in the trading price of the crypto as the price has declined below the 20-day and the 50-day EMA.
The MACD values further dip towards the zero level, and the MACD declines to the level of -0.079.
Summary
Lido DAO (LDO) faces a significant decline, which is evident from a break below crucial patterns and the closure of numerous long positions.
Market cap dominance has dwindled to 0.07%, accompanied by a 6.1% price drop. Bearish sentiments prevail as on-chain indicators signal profit-taking, with a majority of holders at a loss.
Declining derivatives open interest and a negative funding rate further emphasize bearish dominance. Technical analysis supports the bearish trend, with LDO breaking below key support levels.
The support levels for the LDO crypto are between $0.460 and $1.40, and the resistance for the same is $4.0 and 5.0.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.