Lido is seeing a weekly increase in deposit withdrawals despite sluggish market conditions. LDO struggles to bounce off near-term support as investors lean on the cautious side.
Lido Finance has certainly been the network to watch in recent weeks, especially after strike unlocks. Unfortunately, the timing may not be favorable for the network as the market cools down, especially since mid-month.
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Lido revealed in its latest update that current market conditions have had a negative impact on its TVL. The latter shaved more than 10%, but the network confirmed that this result was largely due to the discounts tokens received courtesy of bearish market conditions.
📈 Lido Analytics: April 17 – April 24, 2023
TLDR:
– Lido TVL saw a correction of -10.07% due to a drop in token prices.
– Lido took in 19.4% of this week’s ETH deposits, totaling 111.0k ETH.
– stETH/ETH remains stable and currently stands at 0.9988. pic.twitter.com/SBwpykrXMO— Lido (@LidoFinance) April 24, 2023
The update also reported some good news about staking deposits which are up 19% this week. So a confirmation of a healthy demand for the stocking platform. But is this enough to prop up investor sentiment for LDO?
LDO’s short-term support offers a solution
The good news (at least for holders) is that LDO has so far managed to hold on to most of the gains it made in January. Not so good news for short sellers.
Previous bearish attempts in February and March were thwarted near the $2 price level, confirming strong support at this range.
As fate would have it, LDO bears began another attack in mid-April, leading to a retest of the same $2 support. There was significant consolidation at the same support level over the past five days.
Source: TradingView
LDO’s money flow indicator registered a pivot mid-week last week and has since seen some upside, confirming that liquidity is pouring in.
However, LDO is struggling to bounce back and this confirms the weak buying pressure of the past few days.
How much are 1,10,100 LDOs worth today?
The weak buying pressure correlates with general market conditions, which have been characterized by a wave of uncertainty. LDO’s current support may collapse if the same market conditions prevail.
Some on-chain metrics favor such a result. For example, the supply of top addresses indicates that more selling pressure came from top addresses during Tuesday’s (April 25) trading session.
Source: Sentiment
There was also a spike in measured age, indicating that a significant amount of LDO has been moved. This corresponds to the outflow of top addresses. Exchange flow data confirms a slowdown over the past seven days on both sides.
Source: Sentiment
In short, LDO may lose its current support if current market conditions continue. On the other hand, another significant uptick from current levels could boost investor confidence.
This post Lido releases update on deposit status, details inside
was published first on https://ambcrypto.com/lido-releases-update-about-state-of-staking-deposits-details-inside/
