Lido DAO’s native token, LDO, surged by 8% over the past 24 hours. This rally coincided with a 58% increase in trading volume, signaling growing investor interest. However, the spike has also triggered profit-taking, leading to a sharp decline in open interest among futures traders.
Record Trading Volume for LDO
LDO’s price surge reflects increased demand for the token. Data from IntoTheBlock shows that 891 unique addresses transacted LDO on Monday, the highest daily count since February 2023.
This uptick in active addresses, combined with rising prices, indicates genuine demand rather than speculative trading. Supporting this, LDO’s trading volume across exchanges hit $670 million, an all-time high for the Ethereum staking protocol, according to DeFiLlama.
Futures Traders Lock in Profits
Despite the rally, LDO’s open interest dropped significantly over the past 24 hours, now standing at $52 million—a 50% decrease. This decline highlights futures traders taking profits after recent gains.
Open interest measures the total number of unsettled futures contracts. When it decreases during a price rally, it suggests traders are closing positions, reducing the number of outstanding contracts.
LDO Price Prediction: Bullish Momentum or a Pullback?
On the daily chart, LDO broke out of a descending channel it had been trading in since January. This breakout indicates a shift in market sentiment, with buyers gaining control and pushing prices higher.
If the bullish momentum holds, LDO could climb to $2.09, a level last seen in August. However, if selling pressure mounts, the price may drop to $1.08, especially if the $1.56 support level fails to hold.
