Date: Mon, Nov 11, 2024, 10:21 AM GMT
The crypto market is off to a roaring start this week, maintaining the bullish momentum ignited by Donald Trump’s election victory on Nov 5. Since then, Bitcoin (BTC) has been hitting new all-time highs almost daily, with the latest peak at a stunning $82,371. This rally has fueled gains across major crypto assets and even driven up prices in altcoins.
Meanwhile, Lido DAO (LDO) has experienced a significant decline, dropping over 7% in the past 24 hours. This comes after an impressive rally of 30% over the last week, with LDO currently trading at $1.26
$50M Sell-off
One of the primary factor behind LDO’s recent pullback is a massive sell-off by three of the original Lido DAO members. As reported by Spotonchain, these members collectively sold nearly $50 million worth of LDO, putting downward pressure on the price. Here’s a breakdown of the sell-off:
- Paradigm deposited 36.51M LDO ($47.7M) to Coinbase Prime, reducing their holding to 33.49M LDO ($41.9M).
- Delphi Digital transferred 859,703 LDO ($1.13M) to Wintermute Trading four days ago.
- KR1 plc moved 600K LDO ($749K) to Kraken, currently holding 11.3M LDO ($14.25M).
This large sell-off during last week’s rally led to increased selling pressure, contributing to the recent price decline.
Is Recovery Ahead?
Despite the drop, LDO’s technical setup suggests that a recovery could be on the horizon. After breaking out above the key psychological level of $1.00, LDO surged to a high of $1.49, encountering resistance at this level. The subsequent rejection brought LDO back down to $1.27, with the price now hovering above a minor support level at $1.22.
If LDO continues to hold above this $1.22 support, it may signal buyer interest and a potential for a quick recovery. The price action suggests that LDO could attempt to retest the $1.49 resistance level in the short term. A breakout above $1.49 would indicate renewed bullish momentum, potentially pushing LDO toward the $1.80-$2.00 range, where the next significant resistance levels lie.
Key Technical Levels
- Support at $1.22: This level has acted as a buffer for the recent decline. Holding above this level may provide a foundation for a potential bounce.
- Resistance at $1.49: A key resistance level that previously capped the rally. A break above $1.49 could set LDO up for further gains.
- Upside Target Range ($1.80 – $2.00): If LDO breaks above $1.49 with strong volume, the next resistance levels are around $1.80 and $2.00, which would mark a substantial recovery.
Conclusion
While the recent $50M sell-off caused a temporary setback, LDO’s price action indicates that a recovery may be in store. As long as it maintains support above $1.22, the potential for a rally toward $1.49 and possibly higher remains intact. However, a break below $1.22 could signal further downside.
Investors should keep an eye on the $1.49 resistance level and look for volume increases to confirm any breakout. With BTC leading a market-wide rally, LDO might still benefit from bullish sentiment across the crypto space.
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