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Key Takeaways:
- BlackRock’s ETH staking plan is the primary catalyst behind LDO’s 21% rally and market cap surge.
- Investor behavior shows aggressive accumulation, but profit-taking and Netflow spikes hint at potential short-term pressure.
- Momentum indicators suggest further upside, with $1.40 as the next target if buyers stay in control.
Lido DAO [LDO] saw an impressive 21.53% price rally, reaching a two-month high of $1.15 before slightly retracing to $1.13. The price spike was accompanied by a surge in trading volume and market capitalization, both indicating renewed investor interest and network activity.
On July 17, LDO’s market cap reclaimed the $1 billion milestone while trading volume jumped 219.9% to $471 million, reflecting strong accumulation across exchanges.
BlackRock’s ETH Staking Plans Fuel LDO Price Surge
The rally appears to have been sparked by institutional developments. BlackRock, the world’s largest asset manager, recently filed to enable staking on its Ethereum ETF (ETHA). Since much of Ethereum’s staking activity flows through Lido, the news was seen as a bullish catalyst for LDO.
This move could lead to increased demand for Lido’s staked ETH (stETH) derivatives, strengthening its role in Ethereum’s proof-of-stake (PoS) ecosystem. As institutional staking becomes more mainstream, Lido is positioned as a key beneficiary.
LDO Buy Volume Indicates Aggressive Accumulation
Investor behavior following the BlackRock filing further confirms strong market sentiment toward Lido. On July 17th, Lido DAO registered $48.6 million in buy volume, surpassing $45.7 million in sell volume. The buy-sell delta remained positive for two consecutive days.
At press time, LDO still recorded a net positive delta of $1.9 million, underscoring ongoing demand. Historically, a consistent uptick in buy volume signals aggressive accumulation and bullish conviction.
Profit-Taking Activity and Exchange Inflows Rise
However, not all signs point upward. Profit-taking behavior has started to emerge. Spot Netflow—a metric that measures token movement into exchanges—hit a six-month high of $5.2 million before retreating to $2.77 million. High Netflow often precedes increased selling pressure.
Additionally, Santiment data revealed a drop in LDO’s Stock-to-Flow Ratio (SFR) to 26.4, indicating higher token availability on exchanges, which often aligns with potential price retracements.
Despite the caution signs, Lido’s technical momentum remains strong. The Relative Strength Index (RSI) climbed to 78, entering overbought territory. Similarly, the Directional Movement Index (DMI) rose to 41—both indicators of strong bullish momentum.
If bulls maintain control, LDO could aim for the $1.40 resistance level. However, if profit-taking intensifies, the token could retrace toward support around $0.97.
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
Also Read: Lido DAO [LDO] Rallies 27%: Analysts Predict an 80% Surge Amid Bullish Momentum
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
