Lido Dao is up by over 7% in the last 24 hours. The token experienced a notable increase as the bulls resumed the uptrend after a brief break.
The asset dipped to $1.91 during the previous intraday session after opening the day at $2. It recovered but failed to register a significant price change. On Sunday, the bears lost their dominance as the bulls resumed the uptrend, sending the price to new highs.
LDO opened the last day of the week at $1.99 and surged after a slight decline. It broke its fourteen-day high at $2.15 and continued upwards, peaking at $2.22.
This is not the first time the asset is seeing notable increases this week. It surged from $1.82 to $2.11 on Friday. It is worth noting it kicked off the week with notable increases, gaining over 12% on Monday and almost 5% the next day.
Why is LDO Surging?
The asset saw a massive increase in buying volume over the last seven days. The latest trend comes after its scheduled maintenance. Current price trends suggest investors had renewed interest in LDO after the event.
The altcoin saw a massive increase in whale activity. On Jan. 24, a large player with an address starting at 0x373 converted 664.5 ETH ($2.38 million) to 1.16 million LDO at $2 per unit. Traders positively reacted to this large buy, believing it would convert more assets into the token. The whale owns over $46 million worth of PEPE and over $9 million worth of ENA.
Some days before the latest conversion, another large bag holder purchased 2.7 million LDO. The buy comes at a period when the asset grappled with massive selling pressure. The buyer showed significant belief in the asset’s prospect, moving them to swap 1,512 WETH for the token at an average price of $1.82.
This is not the whale’s first time it has held the Lido DAO native token. The latest swap brings the total bag to 5.74 million. Nonetheless, traders fear that this may be the end of the uptrend.
Bollinger Band Flips Bearish
The bollinger bands print bearish signals following LDO’s recent climb. The one-day chart shows that the asset broke above the upper band a few hours ago. Such events may indicate that the token is seeing peak buying volume and a massive retracement is inbound.
The asset dropped from a high of $2.22 and now trades at $2. This may be the start of the downtrend as the bears regained dominance. If the bulls fail to resume the uptrend, the asset may continue downward.
Nonetheless, the moving average convergence divergence remains positive amid the current price trend. The 12-day EMA is rising as the 26-day EMA. The relative strength index sees similar increases. Currently at 58, it shows room for more price increases. However, it is worth noting that it experienced an over 40% increase in trading volume, which may gradually dwindle in the coming days.
How Low Will Lido DAO Go?
The Fibonacci Retracement levels show the asset trading above the 38% Fib mark. The latest reading comes after it broke above the 23% mark a few hours ago. If the bulls fail to continue the uptrend, it risks further declines to the 50% level at $1.73.
Nonetheless, previous price movements suggest that the asset may rebound at this mark due to notable demand concentration.
