Lido Finance’s (LDO) recent lacklustre performance seems to have marked the end of its fantastic run from June and August. While LDO came down to trade at £2.64 as of August 13th, the altcoin recorded three-digit percentage profits while experiencing a parabolic rise in June that persisted into August.
By the looks of the Market Value to Realized Value (MVRV) ratio at the time of writing, it seemed that LDO investors would have to wait a lot longer before they see large returns again.
On July 17th, LDO’s MVRV ratio peaked at 107.70%. A 100% MVRV ratio, for example, indicates that investors have generated enormous gains. LDO traded at £2.29 at the time, according to CoinMarketCap.
Chart highlighted the fact that those investors who held until the aforementioned levels generated profits of over 100%.
On the other hand, given that the MVRV ratio was -18.63% as of the time time of writing, LDO currently appears to be a letdown.
LDO seems to keep its second-place TVL ranking in the DeFi sector, just below MakerDAO (MKR). According to DeFi Llama, its TVL was £5.20 billion at press time.
LDO’s TVL is down 15.25% over the past thirty days. This simply indicates that less cryptocurrency was deposited than was the case the last month.
LDO seems to be engaged in a support and resistance game based on the four-hour chart. Its support level of £1.39 of September 30 has lost hold all the way down to £1.25 at the time of writing. LDO might fail to hold onto its current price with this momentum.
Having said that, there may yet be potential for an improvement. This is because LDO’s current movement matches the momentum of the 19th and 26th of June. The manner in which support was lost and buying mode activated explains the correlation.
On the charts, the bulls regained control after the loss of support up until June 19. It was the same situation on June 26. Given the current LDO momentum, there is a likelihood of a buying momentum taking place.
However, the Exponential Moving Averages (EMAs) paint a different picture. Especially because a signal for seller control is generated when the 50 EMA is above the 20 EMA. Although there had been a slight uptick in volume over the past 24 hours, it was insignificant enough to suggest a resurgence in investor interest.