Lido Finance: LDO’s reaction to the accumulation of whales calls for vigilance because…

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  • Ethereum Whales Sparked Interest in LDO as Token Price Rises
  • Lido’s on-chain performance showed some shortfall. It may therefore be necessary to be careful

Financing of the Lido [LDO] garnered a price increase of 7.88% in the last 24 hours Ethereum [ETH] whale interest in the token. According to WhaleStats, LDO was one of the most used smart contract tokens by the top 5000 investors in this group during the same period.

This action implied increased buying activity and movement for the liquid staking solution utility token.

Read the Lido DAOs [LDO] price prediction 2023-2024

However, the increase in value might not be enough to conclude that LDO has responded positively to the development. For lovers of short-term profit, this might be enough. Yet the chain condition of LDO revealed contrasting outlook.

Excitement should not eradicate surveillance

There was reason to remain vigilant as Santiment showed that rising prices rarely impact recorded gains. This was the case, especially for long-term holders of the token, let by the market value to realized value (MVRV) ratio.

According to the on-chain portal, the MVRV report from seven days to 365 days maintained negative values all around. At press time, the seven-day MVRV ratio was -9.859% and the 365-day ratio was -37.80%.

Source: Santiment

Thus, the average purchase value of LDO was worth more than the current price. Consequently, investors had barely made a profit and they were not yet willing to sell. Moreover, it was unlikely that there would be a market correction since LDO could be considered undervalued.

Despite the inconsistency shown by LDO, the average investor remained zealous. Indeed, the positive sentiment attributed to LDO was 0.541 at the time of writing. Based on data from Santiment, negative sentiment was 0.459.

However, as values ​​were close and positive sentiment could not dominate with a value of 0.75, this meant that a large portion of LDO investors remained cautious.

Positive and negative LDO sentiment

Source: Santiment

Lido Finance: On the social front

Lido’s social measures rest “bland and bad” at 0.009%, according to Santiment. This meant that the arbitrary search and discussions for LDO were at an extremely low point. Moreover, this condition meant that LDO had almost no hype even after the price rose and could possibly send the uptrend in the opposite direction.

His social volume was also full of flaws as Santiment showed that it was at a value of 1. This implied that the LDO community discussion was not significant to trigger the price higher. Thus, LDO risked losing the recently recorded recovery.

Social domination and social volume of Lido Finance

Source: Santiment

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