when talking about ethereum [ETH] Merge has become an irreversible focus of the cryptocurrency community, Lido Finance [LDO] was often pointed out. not only, The king of ETH staking But mostly because it was involved in increasing prices.
In 2022 alone, LDOs will increase by over 150%, recording A 20% increase from the previous week. Unfortunately for investors, the gains couldn’t make up for the current massive drop.
based on coin market capitalization The data showed that the LDO was down almost 50% from what it was 30 days ago. As of August 15th, the LDO was worth $2.82.
At the time of writing, it was trading at $1.79. Due to its previous impressive performance, LDO investors may have expected better momentum than the Lido DAO governance token is currently showing.
A cry for help?
There was a 48.28% gain, but the daily chart showed the price holding down more than a reversal.
According to the daily chart, LDO first raised its support level. It went up from $1.55 to $1.99. However, the opposite was the case as the LDO was on the verge of losing his $1.79 support zone.
Additionally, On-Balance-Volume (OBV) has decreased from 218.64 million on Sept. 11 to 174.85 million at the time of writing. This may indicate that some of his LDO investors are lowering their expectations and withholding liquidity.
Source: Trading View
While evaluating the 4-hour chart, the Exponential Moving Average (EMA) indicated that short-term momentum could be lower than the current decline.
The 50 EMA (yellow) was above the 20 EMA (blue), but by a small margin. Still, the bearish signs are most likely to continue even if a merger happens.
Source: Trading View
we are on top!
A look at the Beacon chain pool revealed that LDO deposits were increasing until September 9th.according to Dune analysis, Lido ETH deposit was 4,161,440. This represented 30.4% of total deposits, or 13,708,440.
Source: Dune Analytics
Along with the price movement, the on-chain indicator also dropped. Santiment, a cryptoanalysis platform, Indicated Exchange supply decreased from 5.52% to 5.44% in 3 days.
Active addresses climbed to almost 677 as of September 11th, but have shrunk to 372.
However, a post-event recovery is what LDO investors can expect, as most of the deals are on hold.
Source: Santimento