Lido DAO (LDO): Traders Begin Profit Taking, But Here’s the Problem

Lido DAO has enticed its investors recently. The altcoin has trended as among the top-performing digital coins by July 2022. Meanwhile, the native coin LDO presented attractive movements as it mirrored market sentiment. However, the question lingers around the effect of these sentiments on the token and network.

LDO Skyrockets

The native coin by the liquid staking network, LDO, witnessed a phenomenal week. The alternative token gained a staggering 205.44%, within nearly 26% of the move coming on July 19’s final 24 hours. Furthermore, LDO is among the few cryptos to recover losses incurred in June. The alt’s month-to-date 324% rally helped it erase almost all declines recorded following the May crash.

Nevertheless, LDO has most investors enduring losses. Moreover, last month’s data (on the same) showed more than 91% of LDO holders experienced losses. Around 225 of these had resumed their profit status during this publication.

The Curious Scenario of Selling Lido DAO

Generally, market participants that witnessed recoveries will avoid losing their returns again. That drove investor confidence, motivating holders to sell the asset. The on-chain data over the previous 24 hours confirm such narratively. Investors sold about 10.9 million Lido DAO tokens worth over $19.62 million.

That was inevitable as Lido DAO saw LDO worth $24 million in the profit territory. The blockchain has never recorded such figures. Analysts determine the value by LDO’s total movements plus the price difference between purchase cost & current value.

Moreover, as most investors sold, several moved the supply around. Therefore, leading to a 176% surge in how LDO tokens changed hands. That confirms that though some Lido DAO HODLers sold the assets, most held their holding to support the ongoing rally.

LDO has the chance to extend its rally beyond $2 as the alt recaptured the 50-day Simple Moving Average and the 100-day Simple Moving Average as support. Latest selling might not significantly affect price actions as long as investors refrain from repeating this scenario soon. Meanwhile, Lido DAO investors should watch broad market sentiments to ensure profitable undertakings.

Stay tuned for upcoming developments in the cryptocurrency space.