Lido Dao’s native token, LDO, has captured the attention of crypto enthusiasts after a strong rally in the past 24 hours. However, the token is now testing a key resistance level at $2.10, a level that has historically been associated with selling pressure and price declines.
$7.18 million LDO inflow into scholarships
As the price of LDO rose, there is data on the chains of it Coinglass revealed an influx of $7.18 million of LDO tokens into exchanges, helping prepare long-term holders or whales for sales.
The inflows into the exchanges suggest that long-term holders or whales have moved their holdings to the exchanges ahead of a possible sell-off. However, this could lead to selling pressure and further price declines.
Looking at such a dump over the past 24 hours indicates that history may repeat itself.
Lido Dao (LDO) technical analysis and key levels
According to experts’ technical analysis, LDO appears bullish but is currently at a crucial resistance level at $2.10. The daily chart of LDO shows that the price has reached this level more than twice, and each time it has witnessed a price drop of more than 28%, from $2.08 to $1.47.
However, this time, due to past history, investors have started dumping their holdings and speculating that LDO could drop another 28% to reach the $1.47 level.
Conversely, if the current sentiment for LDO continues and the price crosses the resistance level and a daily candle closes above $2.10, there is a strong possibility that it could rise by 65% to reach the $3.50 level. However, in the cryptocurrency market, such a rally is easily achievable.
LDO is currently trading near $2 and has experienced a price increase of over 15.50% in the last 24 hours. However, during the same period, trading volume increased by 78%, indicating increased participation from traders and investors compared to previous days.
Credit : coinpedia.org
