LDO, the native token of Lido DAO, has seen an 8% price increase over the past 24 hours. Trading volume has also surged by 58% during the analyzed period, reflecting the increased activity around the altcoin.
However, LDO’s open interest has seen a significant drop over the past 24 hours. This suggests that some futures traders may be taking profits following the recent gains.
Trading volume hits all-time high
LDO’s rally over the past 24 hours was driven by an increase in demand during this period. According to IntoTheBlock, 891 unique addresses completed at least one LDO transaction on Monday (25). This marks its highest daily number since February 2023.
Daily Active LDO Addresses. Source: IntoTheBlock
In short, when an increase in daily active addresses accompanies a price rise, it signals increased network activity and user engagement, suggesting that the rally is driven by genuine demand for the asset, rather than speculative trading.
Currently, LDO’s trading volume on cryptocurrency exchanges has totaled $670 million, according to data from DefiLlama. This represents its all-time high since the ETH staking protocol was launched.
LDO Trading Volume. Source: DefiLlama
However, LDO’s 8% increase was accompanied by a significant drop in its Open Interest (OI). According to data from Santiment, the OI is at $52 million, down 50% in the last 24 hours. This reflects an increase in profit-taking among futures traders following the price rally.
LDO Open Interest. Source: Santiment
LDO Price Prediction
On the daily chart, the 8% rally pushed LDO above a descending channel, which it had been trading in since January. This pattern occurs when the price of an asset trades within two descending trendlines, indicating a downtrend.
A break above the upper trendline of the channel signals a possible change in market sentiment. It therefore indicates a reversal of the downtrend. Thus, such a break suggests an increase in bullish momentum as buyers may be gaining control.
LDO Price Analysis. Source: TradingView
If LDO’s buying pressure strengthens, its price could rise to $2.09, a level last reached in August. On the other hand, if selling pressure gains strength, the altcoin will lose its recent gains and fall to $1.08 if the $1.56 support level fails to hold.
The article LDO records historic volume, but Open Interest drops 50% was first seen on BeInCrypto Brasil.
