Lido DAO (LDO) price bullish despite selloff pressure

Lido DAO (LDO) is among today’s top gainers despite the recent Dragonfly Capital transfer of 461,000 LDO worth about $1.05 million to Binance in a move many believe is a preparation for a selloff.

According to a tweet made by Lookonchain, Dragonfly Capital currently holds 8.62 million LDO worth $20 million. The tweet continues to state:

“If you want to short $LDO, pay attention to Dragonfly Capital’s address, selling will make the price of $LDO fall.”

Possibility of a continued surge

There are high possibilities of a continued price surge seems likely backed by positive market indicators and metrics. This is, however, likely to change in case Dragonfly Capital decides to sell the 461,000 LDO tokens transferred to Binance.

A majority of technical indicators forecast a slightly bullish LDO price movement for the remainder of the week. LDO’s Chaikin Money Flow (CMF), for example, recorded a sharp uptick and is headed towards the neutral mark.

LDO’s Money Flow Index (MFI) has also gone up and LDO’s Moving Average Convergence Divergence (MACD) also displays a bullish crossover despite the Bollinger Bands showing that LDO was entering a high volatility zone.

If the LDO price holds or turns bullish, it will be considered a turning point since the token has been facing a bear market over the last week that saw its price decline by about 7%.

Promising Lido network statistics

Data from Token Terminal shows there are quite a few factors working in favour of Lido DAO, which can fuel further uptrend in the coming weeks. For example, Lido DAO’s revenue has been increasing over the past few weeks which suggests an increase in token usage. The network’s value has also gone up substantially, as evident from the increased total value locked (TVL).

The sudden increase in activity on Lido is partly because of the withdrawal of staked ETH from the protocol when Ethereum completed the Shanghai upgrade on April 12. according to data provided by Lookonchain, 111,378 ETH worth about $216.3 million were withdrawn immediately after the Shanghai upgrade went live with Lido Finance accounting for 63,695 ETH withdrawals which account for 57.2% of the total withdrawals.

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