Lido DAO’s governance token, LDO, experienced a significant 17% price increase, propelled by substantial whale activity in derivatives markets and a sharp rise in trading volume. The surge pushed the token’s price to $1.119 amidst heightened market interest.
Concurrently, trading volume skyrocketed by 232% as the token’s market capitalization reached $987 million. This bullish momentum was further supported by positive momentum in the derivatives sector, with a Buy Sell Delta indicator in the green for five consecutive days.
Indicators showed a significant spike in trader engagement. Lido DAO’s Open Interest (OI) surged 32.2% to $225 million, while Derivatives Volume saw an even more dramatic climb of 199% to $537.8 million.
However, risks emerged as signs of profit-taking surfaced. The Spot Netflow for LDO surged to a three-week high of $3.36 million, suggesting potential selling pressure building as holders look to capitalize on recent gains.
Technical analysis, while initially showing bias towards bulls as evidenced by a bullish crossover on the Relative Strength Index (RSI), now points to the possibility of a price pullback. If sustained selling pressure materializes, a retracement towards the $0.891 support level could occur.