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- Lookonchain tweeted that a whale bought 475K Lido tokens from Binance.
- According to preconceived notions, LDO broke the formidable 50-day MA after whale activity.
- Bulls tussle tooth and nail with the bears; LDO could move in either direction.
Lookonchain, a crypto analysis platform, tweeted that a whale bought 474,527 Lido DAO tokens (LDO) worth $1.24M from Binance. This was the second time that the whale bought LDO tokens for the day.
1/ A $LDO whale bought 474,527 $LDO ($1.24M) from #Binance again today and currently holds 14.8M $LDO($39.38M).The average buying cost of this whale is about ~$2.49.And the current floating profit is ～$2.58M.https://t.co/Z89V8fHabJ pic.twitter.com/jdbH4kgfNI— Lookonchain (@lookonchain) March 7, 2023
Currently, the whale holds 14.8M LDO worth $39.38M with an average cost of ~$2.49 and a floating profit of～$2.58M.
When looking at the LDO/USDT chart below, it could be seen that LDO was able to break the formidable 50-day MA (orange) after the whale activity. However, it would be prejudiced if the surge was solely put on the whales.
LDO/USDT 1-hour Chart (Source: Tradingview)
Whatever the reason may be, LDO surged by 4.19%, reaching $2.658 from $2.548. As seen in the chart above, LDO is fluctuating in a bullish pennant, but since its prices touched the upper Bollinger, the market has retraced LDO. As of press time, LDO is trading close to the median line, but it would be interesting to see how it would react if the whales who bought were to dump LDO into the open market.
Meanwhile, when considering the LDO day chart below, we can see that the token gained ～271% value within the frame of almost two months. As of right now, the bulls are fighting tooth and nail with bears as LDO is consolidating. However, the token has touched the lower Bollinger, so we could expect the market to correct the prices, and as such, LDO could surge.
LDO/USDT 1-Day Chart (Source: Tradingview)
If the market corrects LDO prices and it is to surge to the median line, then it would present an excellent opportunity for scalpers and intraday traders to open a long position. The RSI indicator is at 46.96 and is positioned parallel to the horizontal axis, hence, it’s neutral and the trend is strong.
However, if the whale who bought LDO happens to dump it into the open market, then the token could tank to Support 1. This dump could create a ripple effect, and the masses could sell out LDO, reducing the prices further. As such, traders should be vigilant at this phase of the time since factors that indicators can’t predict are lurking around the corner
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