Journalist
Posted:
- Lido saw a huge price increase amid growing interest in the liquid staking sector.
- Trader sentiment provided the narrative for LDO’s evolving momentum.
Lido [LDO] has asserted its dominance in the liquid staking sector and has gained increasing attention as interest in this sector continues to grow.
The LDO token, a focal point of this growing interest, recently saw a significant price increase. The altcoin recorded a remarkable growth of 9.75% in the past 24 hours.
This move of the LDO token revealed a pattern of establishing multiple high highs and high lows, contributing to a bullish trend.
This price behavior also indicated a positive trajectory, attracting the attention of both existing and potential investors. However, it remains to be seen whether this bullish momentum can continue.
Let’s take a closer look
AMBCrypto’s analysis of Lido’s network dynamics showed increased interest from new addresses.
However, a simultaneous decrease in speed implied a reduction in the number of transactions using the token. This meant a nuanced response from the market at the time the report was written.
Source: Santiment
When we dug into the key metrics, the MVRV ratio for LDO witnessed growth, indicating that more profitable addresses were holding the token. This could possibly imply a higher incentive to sell.
At the same time, a growing Long/Short gap indicated a significant presence of long-term investors, reflecting the resilient commitment of a substantial portion of investors.
Source: Santiment
Looking at the business sentiment
In terms of trading sentiment, the landscape at the time of writing showed short positions at 56.8%, which outweighed long positions. This indicated a prevailing cautious attitude among traders, possibly influenced by market uncertainties or strategic considerations.
Realistic or not, here is the market cap of LDO in terms of BTC
Rising short positions can potentially impact the LDO by introducing increased selling pressure.
Traders betting on the token can try to take advantage of potential price drops, affecting overall market sentiment and contributing to increased volatility.
Source: Coinglass
