Lido Finances’ LDO token is witnessing a significant upswing in market activity, mainly driven by whale movements. Recent data from Lookonchain reveals that since October 2, a prominent whale has aggressively acquired two million LDO tokens, amounting to $3.6 million, at an average price of $1.79 per token.
This substantial investment not only demonstrates robust confidence in Lido’s potential but also indicates a strategic play in the cryptocurrency market. Currently, the whale’s holdings have soared in value, with an estimated profit of around $1.4 million, reflecting Lido’s strengthening market position.
With the investor now leveraging these holdings further by depositing the entire 2 million LDO, valued at $5 million, into Aave and borrowing 1.56 million USDT, there’s a clear intention to continue accumulating LDO. This move raises a critical question: Can the price of Lido’s token, currently around $2.50, continue its upward trajectory in light of this concentrated whale activity?
The impact of such significant investments and strategic maneuvers on Lido’s market dynamics and its potential to breach the $3 mark remains a topic of keen interest among investors and market analysts alike.
The price of LDO token has been in an uptrend since October 20. It started increasing from a low of $1.50 and made a 78% recovery to $2.66, its highest point today on November 22. It fell back slightly but is now once more in an uptrend trajectory.
October’s low was higher on the macro scale, but November 22 high was lower. This price movement formed a larger symmetrical triangle since the token’s market release, but there is a chance of a breakout ahead.
As the price interacts with this descending resistance, we are still waiting to see if it can surpass or get rejected. Before its all-time high of $3.30 on February 18, the previous high was a lower one, meaning that with each strive, the price is attempting to surpass the previous one, and although we only have one sample, we have three higher lows to support this assumption.
The daily chart RSI has been touching the overbought zone but fell to around 60%, around which it is currently sitting. On the previous macro high, the RSI reached 84%, so this indicator shows that even though the price was in an uninterrupted upward trajectory, there is still more room for the upside.
The $3 target was near its first macro high on August 13 last year and could be its first target. But if history repeats itself, a new all-time high is also a possibility, meaning that the price could go above $3.30 for the end of this uptrend.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.