by - Lido Finance TVL remained in second position despite the fall of the global DeFi protocol
- Price action showed buying and selling momentum vying for relevance
Lido Finances [LDO] Total value locked [TVL] has maintained the liquid staking protocol among the top DeFi ecosystems. This happened despite the massive decline in the broader DeFi market.
At press time, the Lido DeFi TVL was $5.88 billion. According DeFi LlamaLido had maintained its second position, only behind ManufacturerDAO [MKR]. The performance of the protocol over the last 30 days had dropped by 33%. This implied that the deposits in the Lido protocol were not impressive, despite the increased incentives with its Ethereum [ETH] staking.
Source: DeFi Lama
Lily Lido Finance Price Prediction for 2023-2024
Lido Finance: Developments and increase in volumes
Although there were decreases, this was not evident in Lido’s development activity. Data from Santiment showed that development activity, which had fallen on November 23, had recovered to a value of 11.21 at press time. This meant the team was continually tweaking and refining upgrades to its protocol.
Another hike that seemed a bit significant was its volume. At the time of this writing, the 24-hour volume was $18.16 million. This represents an increase of 20.83% compared to the previous day. Thus, there have been a relatively large number of transactions that have gone through the Lido chain lately.
Source: Santiment
Of the price and what’s to come
As for the price, LDO was trading at $1.10, according to CoinMarketCap. Although this was a minimal increase from the past 24 hours, the four-hour chart showed that there could be some upside potential.
Indeed, the Relative Strength Index (RSI) showed tentative buying power at 40.66. So the bearish experience could turn bullish, but there was no strong signal to mean the same.
However, the moving average convergence divergence (MACD) indicated a battle for buying and selling strength. At press time, the MACD showed that the bearish momentum is not completely gone.
Indeed, the buying force (blue) and the sellers (red) were almost at the same point. Nevertheless, the MACD seemed to reflect more of a decline than a slight rise.
Source: Trading View
As for its direction, it might be difficult for LDO to break out of its bearish state. This was due to the position of the Directional Movement Index (DMI). At press time, the positive (green) DMI was 15.05 and the negative (red) DMI was 27.21. As this was not a close call, LDO may lose hold of the $1.10 region
Additionally, the Average Directional Index (ADX) position showed upward directional strength. With the ADX (yellow) at 26:35, there was more support for LDO to succumb to red control.
