LDO whales continue selling as Lido DAO price crashes to a seven-month low
|- Lido DAO price declined by 8.24% to trade at $1.54 at the time of writing, nearly being oversold.
- Whale addresses have been shedding LDO since the beginning of August, selling close to 8.2 million LDO month-to-date.
- The altcoin’s high correlation with BTC signals a threat to its recovery as Bitcoin price is currently dabbling around $26,000.
Lido DAO price has been in a macro downtrend since February this year, which is seemingly affecting the investors significantly. Bothered by the losses, a group of investors have decided to change their stance regarding the altcoin. This might result in a further drawdown for the cryptocurrency.
Lido DAO price decline continues
Lido DAO price at the time of writing was down by more than 8% in the last 24 hours. Most of the decrease in value is the result of the broader market cues, which are still bearish since the recent crash.
Add to that the skepticism arising out of investors and the potential for LDO to go down further increases. This is visible among whale addresses as they have been selling for the last few weeks, and by the looks of it, their behavior might not change anytime soon.
The addresses holding between 100,000 LDO to 1 million LDO have sold nearly 8.2 million LDO worth over $12.3 million at the current price. This selling was initiated at the beginning of this month, and the consistent declines over the past four weeks added to the investors' agony. Consequently, they shed their holdings to 88.3 million LDO from 96.5 million LDO.
Lido DAO supply distribution
At the time of writing, LDO is changing hands at $1.54, nearing a critical support level at $1.46. Falling through this would trigger further losses for Lido DAO investors. As it is, the altcoin is trading at a seven-month low, and according to the Relative Strength Index (RSI), additional decline would result in the altcoin being oversold.
LDO/USD 1-day chart
While that historically is a sign of a potential reversal in trend from bearish to bullish, LDO’s case may not be that strong. The cryptocurrency shares a high correlation of 0.88 with BTC, and Bitcoin price has been making investors nervous, dabbling around $26,000 after the recent crash.
Lido DAO correlation with Bitcoin
If the biggest cryptocurrency in the world falls below $26,000, it would not be surprising for Lido DAO price to fall too. This could pull LDO far below, potentially towards 2023 lows of $0.94.
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