Ahead of the Merge update, Lido Finance was one of the most actively traded cryptocurrencies on the market, as their DAO remained the biggest Ethereum validator in the world. However, after the implementation of the update was over, Lido faced a massive spike in selling pressure, but a reversal might be around the corner.
Since Oct. 14, Lido Finance gained 32% to its value and successfully broke through the local resistance line. However, the plunge on the cryptocurrency market pushed LDO back to the downtrend.
Luckily, Lido or Ethereum bulls were able to support the asset on its way down and cause a reversal. As for now, Lido is showing an almost 6% recovery in the last 24 hours and looking at the 50-day exponential moving average, which acts as a barrier between bull and bear trends.
In the long term, Lido is moving in the downturn since the first listing on centralized exchanges. The most recent Merge rally did not help it fundamentally, which is why the upcoming move upwards is an important test for the asset’s long-term stability.
Bitcoin flowing off exchanges
According to on-chain data, investors are rapidly moving BTC off centralized exchanges, which could be a signal for the ending accumulation period the first cryptocurrency has been in since June. The low volatility, limited price performance and predictability of the asset are a perfect recipe for the beginning of prolonged accumulation.
After entering the rangebound, exchanges saw a strong increase in the percentage of the BTC supply, which confirms the beginning of accumulation. Since June, the supply on exchanges has been gradually decreasing, but in the last few days, investors withdrew the largest amount of tokens seen in the last four months.
Adding the extremely low volatility of BTC and the negative netflow, we will most likely see a significant move of the first cryptocurrency on the market in the foreseeable future. As for now, Bitcoin’s volatility remains on an extremely low level as the digital gold has been moving in the 2% range.
Altcoin market showing some positivity
While it is not yet clear what could have launched the recovery on most digital assets on the market, social metrics were previously flashing green, indicating that most crypto market participants started expressing more positivity compared to what we saw a week ago.
Expectations for a bounce in Q4 are most likely the main reason behind the surge in bullish sentiment, which is already being projected on the cryptocurrency market. It is important to mention that most digital assets, Cardano included, were heavily oversold, and their performance today is most likely the result of the prolonged and heavy selling pressure the cryptocurrency market has been facing for the last two weeks.