Nansen CEO’s Bearish Move
In the current bearish market sentiment, Nansen’s CEO, Alex Svanevik, has made a significant move that could potentially trigger a sharp price drop in Lido DAO (LDO). On September 6, 2024, the on-chain analytics firm Lookonchain reported on X (formerly known as Twitter) that Svanevik had offloaded 3 million LDO tokens, valued at approximately $2.89 million, to Coinbase.
Background
According to the report, Svanevik is an initial DAO member of the Lido project and had received 5 million LDO tokens, valued at $4.9 million, on December 17, 2024. However, before the market sentiment turned bearish and major cryptocurrencies experienced notable price drops, he decided to dump 60% of his total LDO holdings. This massive sell-off by the CEO is viewed as a significant bearish move, and it has the potential to trigger a major sell-off in the coming days. Currently, Bitcoin’s (BTC) price has declined by over 4.5%, shifting the overall market sentiment to extremely bearish.
Lido DAO (LDO) Price Prediction
According to expert technical analysis, LDO appears bearish and is currently trading near a crucial support level of $0.90. Should the price fall and close a daily candle below this level, there is a high possibility that it could drop by almost 50%, reaching the $0.47 level in the coming days.
Technical Analysis
This price prediction is based on higher time frame analysis. The bearish thesis will only hold if the LDO weekly candle closes below the $0.90 level; otherwise, it will be invalid.
Key Bearish Metrics
CoinGlass’s LDO Long/Short Ratio chart also supports this bearish outlook. The ratio currently stands at 0.865, indicating a potential bearish trend. Additionally, LDO’s open interest has increased by 2.10% in the last 24 hours, indicating growing interest from traders amid the price decline.
Market Indicators
According to the data, when the Long/Short ratio falls below 1 and the open interest rises, it signals a potential bearish trend. Traders often use this combination to short assets. As of now, 54.68% of top traders are holding short positions, while only 45.32% are in long positions.
Current Price Momentum
As of the latest update, LDO is trading near the $0.94 level and has experienced a price drop of over 3.7% in the last 24 hours. Meanwhile, its trading volume has increased by 15% during the same period, indicating the potential participation of short traders amid the bearish market sentiment.
Conclusion
The recent actions by Nansen’s CEO, Alex Svanevik, have certainly cast a bearish shadow over Lido DAO (LDO). With the market sentiment leaning heavily towards the bearish side and key metrics supporting this outlook, it remains to be seen how LDO will navigate this challenging period. Traders and investors should keep a close eye on the $0.90 support level and the broader market trends to make informed decisions.
