Categories: Forex News
| On
2024-01-26 4:55 PM

Lido’s Price Holds Strong Amid High Profit-Taking in Crypto

 
  • Lido (LDO) witnessed a substantial increase in profit-taking activities by whale investors since December 25, 2023.
  • Despite the rise in profit-taking and increased exchange supply, Lido's price has successfully sustained above $3.
  • LDO surpassed key Fibonacci Retracement levels, facing resistance at $3.121 and $3.236, with potential support at $2.746.
By Nonhlanhla

Lido, a prominent liquid staking service for cryptocurrencies including Ethereum, has witnessed a significant uptick in profit-taking activities among LDO holders. On-chain data indicates that since December 25, 2023, there has been a consistent trend of profit-taking by whales in LDO.

Whale Wallets and Profit-Taking in LDO

Santiment, a crypto intelligence tracker, has observed that transactions from whale wallets, each valued at $100,000 (R1.894 million) or more, have been coinciding with spikes in Network Realized Profit/Loss. This pattern implies that large wallet investors in South Africa and globally have been systematically realizing profits from LDO.

LDO Supply and Price Trends

On January 9, the supply of LDO on exchanges accounted for 5.09% of Lido’s total supply, climbing to 5.69% by Friday, according to Santiment. Despite this increase in exchange supply, which is typically a bearish indicator, Lido’s price has maintained a level above $3 (R56.82). As of now, the Lido price hovers around $3.0007 (R56.85).

LDO’s Technical Analysis

LDO has surpassed the 38.2% Fibonacci Retracement level ($3.050, or R57.77) of its rally from $1.458 (R27.60) on October 19 to $4.035 (R76.42) on January 11, 2024. The price faces resistance at $3.121 (R59.11) and $3.236 (R61.29) in its current uptrend. However, a daily candlestick closure below the 50% Fibonacci Retracement level at $2.746 (R52.00) could negate the bullish outlook for Lido.

For South African crypto investors, Lido’s resilience in the face of increased profit-taking and exchange supply is a sign of the robustness of the cryptocurrency market in the region. As digital assets continue to grow in popularity, Lido’s performance is a key indicator of market health and trader sentiment within the burgeoning South African crypto ecosystem.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Lido DAO