Lido DAO’s native token, LDO, has been making waves in the cryptocurrency market following a significant rally in the past 24 hours. The token has surged over 15.50%, pushing its price closer to the $2.10 mark, a critical resistance level that has historically been tied to selling pressure and subsequent price declines.
$7.18 Million Inflows into Exchanges
On-chain data from CoinGlass highlights a notable development, with $7.18 million worth of LDO tokens flowing into exchanges. This massive influx suggests that long-term holders, including whales, might be preparing to offload their positions, potentially leading to increased selling pressure. Such large-scale movements of LDO onto exchanges could trigger a sell-off, which in turn might exert downward pressure on the token’s price.
LDO Technical Analysis: A Crucial Crossroads
From a technical standpoint, LDO is currently testing a significant resistance level at $2.10. The token’s price has previously reached this threshold on two separate occasions, only to witness sharp declines of over 28%, dropping from $2.08 to as low as $1.47. With the current market sentiment leaning towards a potential sell-off, many investors are speculating that history could repeat itself, leading to another decline toward the $1.47 level.
However, there is also a bullish scenario. If LDO manages to break through the $2.10 resistance level and close a daily candle above it, the token could experience a substantial rally, potentially rising by 65% to reach the $3.50 level. Such a breakout is certainly within the realm of possibility, given the volatility and potential for rapid price swings in the cryptocurrency market.
Also Read: Lido Shuts Down Staking Operations on Polygon, Shifts Focus to Ethereum
Lido DAO (LDO) is at a pivotal moment. While the token has seen a significant surge in the last 24 hours, the $2.10 resistance remains a critical point to watch. With a significant uptick in trading volume, investors and traders alike will be closely monitoring whether LDO can overcome this barrier or face another price decline. As always, the dynamic nature of the crypto market means that both bullish and bearish scenarios are possible, with potential for substantial price movements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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