LDO Price Faces Critical Moment While Lido TVL Nears $40 Billion All-Time High
The total value locked (TVL) of Ethereum-based liquid staking solution Lido has climbed 25% in the past 30 days. As a result, Lido TVL is on the verge of reaching an all-time high of $40 billion, a figure it reached in March.
Despite the rise in this metric, decentralized finance (DeFi) projects’ native cryptocurrency Lido DAO Token (LDO) may find it difficult to continue to appreciate in value. That’s why.
Confidence in Lido Circle betting returning to March peak
In November, Lido’s TLV was $24.6 billion. TVL measures the value of total assets locked or staked on the blockchain. As TVL rises, a large amount of assets are locked into the platform.
This growth typically enhances liquidity, increases user confidence, and can lead to increased demand for the platform’s native tokens. On the other hand, a fall in TVL points to a surge in asset withdrawals, signaling a decline in investor confidence.
According to DeFiLlama, agreed Total Value Locked (TVL) currently stands at $38.57 billion, less than $2 billion from its all-time high. This growth demonstrates renewed confidence in Lido’s ability to deliver competitive volumes.
The spike coincides with a 10% rise in LDO prices over the past 24 hours. This rebound may be attributed to Grayscale Lido DAO Trustsuggesting that investment in cryptocurrencies is now accessible to institutional investors.
However, the inflow/outflow of funds around price (IOMAP) shows that this is Altcoin Prices rose to the $3 mark. This is because there is significant resistance near $2.32.
For context, IOMAP classifies addresses based on addresses in funds, addresses outside funds, and addresses at break-even point. When there is a high number of coins in the currency, it indicates resistance, while a large number of coins outside the currency indicates resistance.
As shown in the chart above, approximately 1,400 addresses hold 124.43 million at an average price of $2.32. This volume is higher than the volume purchased between $1.89 and $2.22, indicating strong resistance near current values. Given this scenario, LDO could experience a significant correction.
LDO Price Prediction: Altcoins Eye Lower Levels
From a technical perspective, the Momentum Oscillator (AO) on the daily chart is positive. However, the AO, which measures momentum, has red histograms. The red bar on the AO indicates LDO momentum is waning.
Like AO, the Moving Average Convergence Divergence (MACD) also supports the bearish outlook. Typically, when MACD is positive, it means momentum is bullish
However, in this case, negative readings suggest that the price of LDO could drop to $1.65. This value is where the 61.8% Fibonacci retracement indicator lies.
If buying pressure increases, this may not be the case, LDO could climb to $2.38. If this intensifies and Lido TVL all-time highs materialize, the altcoin could break above $3 in the short term.
Post LDO prices face critical moment Lido TVL approaches record high of $40 billion first appeared in bein encryption.
