The amount of success and move trend made by LDO (Lida/DAO) seems to be coming to an abrupt end anytime soon. This decline may be recorded in the token network after it has set out on a price rebound mission since early July.
LDO (Lida/DAO) Likely To Decline/Consolidate
According to cryptocurrency experts and analysts, in the next few coming days, the LDO token will likely consolidate or decline. Although the token charts or trendline do not indicate a bearish movement, the high buying pressure on the token seems to be dropping.
Analysts state that the rally would have ended abruptly days ago. However, the rally was extended by the increasing number of whale activity, active addresses, and transactions on the network.
The token entered the overbought zone about two weeks ago after the token was in ten days of consolidation. The buying pressure kept the token floating even after it declined by over 10% in a day. It made a full-price reclamation to recover it in the previous 24 hours. Thus, bringing the rally to 483.07%.
The token currently trades at $2.44, an approximate increase of 5% in the past 24 hours. Its total locked value (TVL) at m is $7,208,741,263 and a total market capitalization of $771,457,273.88.
Lido DAO price action | Source: TradingView
The relative strength indicator indicates another movement into the overbought zone. This indication is a sign of a trend reversal that may be a bear.
LDO Likely To Be Affected By Ethereum Merge
There are speculations that the upcoming merge upgrade on the Ethereum network has been affecting the LDO price. LDO token rose from the lowest bottom list of Altcoins in the trading market to achieve the most bought top 10 tokens during the outgone month, June.
It also ranked as the most traded volume token on the Ethereum blockchain network accumulating 0.07% market dominance. According to statistics from Coin Market Cap, LDO is currently ranked in 62nd position by market cap.
This high amount of whale action and buying pressure accumulated by LDO token despite the bears in the markets were the main bullish drivers. Lido DAO has been on a price recovery mission since last month; despite the 483% rally, LDO Token is 86.78% below its all-time high of $18.62 in November 2021.
However, the effect it may take on the token after completing the merge seems tacky. According to the announcement made by Tim Beiko, the ETH developer team leader, Goerli merges on the network will start on the 6th of August. This preceding Prater Merge on the blockchain network may benefit LDO once the Proof of stake sets in action.