After holding Lido DAO (LDO) tokens for nearly six months without selling, investment company Jump Trading has engaged in a series of LDO token transfers to the Binance cryptocurrency exchange. The Jump Trading LDO transfers have coincided with price dips due to an increase in sell pressure.
The ERC 20 token which grants holders governance rights in the Lido DAO, has attracted crypto investors’ attention as Ethereum staking grows exponentially. Already, 5,017,116.132 ETH has been staked via Lido infrastructure by 157,104 users. As such, the LDO token has attracted over 27,763 since its market launch.
Nonetheless, the Jump Trading subsequent sales could trigger fear on the LDO holders and lead to a significant price crash. Moreover, LDO holders could interpret the subsequent sales as a long term holder taking profits after a relief crypto rally.
According to aggregate market data provided by Coinglass, approximately $548k has been liquidated from the LDO market in the past 24 hours.
Lido DAO (LDO) Price Outlook
As a fresher altcoin with immense potential backed by real world utility, LDO token is significantly affected by whale trading. Following the recent Jump Trading sales, short term LDO traders will be keen on future sales to identify price action.
The LDO token has received massive support from both CEX and DEXes in terms of listing. Today, centralized crypto exchange Bitpanda announced the listing of Lido DAO (LDO) tokens.
However, with the upcoming Ethereum Shanghai upgrade, which will oversee the withdrawal of staked Ethers, the overall demand for LDO is expected to decline. As such, more LDO whales are expected to offload the token in the coming weeks which could induce further decline.