One of the best performers this month, Lido DAO, beat expectations in terms of price recovery. Well, this is thanks to the wild volatility that altcoins are facing.
Unfortunately, the upward movement of the LDO may eventually stop. And, over the next few days, LDO holders may notice a dip in their portfolios.
Lido DAO going backwards?
Well, there will definitely be consolidation in case LDO doesn’t go down.
The reason behind this is not speculation or bearishness. But so far, the buying pressure that led to the rally is saturated.
In fact, two weeks ago, LDO was in the midst of a 10-day consolidation period after peaking in overbought territory.
A similar situation happened last week, as evidenced by the Relative Strength Index (RSI). Also, LDO is down nearly 15%, recovering only in the first 24 hours of press time. Therefore, it rebounded to 483.07%.
Now, the indicator is in overbought territory again. Given the historical clues, a trend reversal will start soon.
Notably, some investors had anticipated this, which is why over $25.8 million worth of LDOs have been sold to exchanges in the past 20 days.
However, LDO holders need not worry about a trend reversal as the altcoin is in a safe position.
Even if prices do adjust slightly, investors will still be hoarding their supply until a recovery hits, as they have been trading in excess profits over the past two months. What they don’t want to lose by selling at a lower price.
Additionally, at some point this month, more than $40.38 million worth of LDO deals were profitable for investors.
But in addition to profits, LDOs will also be supported by external factors, such as the arrival of The Merge on Ethereum (expected between August 6th and August 12th).
After the final testnet merger, Goerli/Prater, on August 4, Ethereum will usher in Proof of Stake. Therefore, LDOs can’t help but benefit.
Final Testnet Merger Plan pic.twitter.com/l4hjeWVIPa
— Kobe (@cobie) July 28, 2022