- LDO’s worth rallied by over 75% within the final week
- As buyers hunt down revenue, the bears is likely to be preparing for a re-entry.
Lido Finance’s governance token LDO, noticed a big enhance in worth of 78% prior to now week. This made LDO one of many top-performing cryptocurrency belongings when it comes to positive factors over the previous seven days, in response to information from CoinMarketCap.
Nonetheless on an uptrend at press time, LDO’s worth was up by 29% within the final 24 hours. In the identical time interval, LDO tokens price $274 million have been traded. This led to a big enhance within the every day buying and selling quantity of over 500%
Learn Lido Finance’s [LDO] Worth Prediction 2023-24
With the Market Worth to Realized Worth (MVRV) ratio of 150.51% at press time, LDO was overvalued. Its market worth (the present worth which was $1.91) was considerably greater than the realized worth (the value at which the asset was not too long ago purchased and bought).
This indicated that buyers that distributed their LDO holdings for the reason that yr started realized double the revenue on their investments.
Supply: Santiment
However for the way lengthy will this proceed?
A downside within the works?
An evaluation of LDO’s efficiency on a every day chart confirmed that bears is likely to be getting ready to re-enter the market. This might result in a possible lower within the worth of LDO.
Over the past 9 days, key momentum indicators rose steadily to relaxation at overbought highs at press time. LDO’s Relative Energy Index (RSI) and Cash Stream Index (MFI) have been noticed at 77.96 and 93.37 at press time.
When an asset’s RSI and MFI lie within the overbought area, the asset’s worth has been rising for an prolonged time period. Because of this, it could be overextended, doubtlessly indicating {that a} worth correction or reversal is imminent.
At overbought highs, patrons available in the market are usually exhausted and are unable to provoke any additional worth rally. Therefore, a downside in LDO’s worth is likely to be on the horizon within the coming days.
Additional, regardless of the value rally within the final week, LDO’s Chaikin Cash Stream (CMF) was seen on a downtrend since 6 January. This might thus, create a bearish divergence.
What number of LDOs are you able to get for $1?
If an asset’s worth rises however the CMF drops, it may point out a bearish divergence between the asset’s worth and the underlying shopping for and promoting stress. This divergence signifies that the asset’s worth will not be sustained, and a worth reversal or correction may very well be imminent.
Lastly, LDO’s worth was considerably unstable at press time. The narrowness of the hole between the higher and decrease bands of alt’s Bollinger Bands revealed this.
When the value of a cryptocurrency is extremely unstable, it implies that it’s susceptible to speedy and important worth fluctuations. Therefore, warning is suggested.
Supply: LDO/USDT on TradingView
