On-chain researcher Lookonchain reports that trading firm Jump Trading may soon dump this altcoin.
Jump Trading is starting to leave its market maker role for this altcoin
Lookonchain found that the firm has moved 3 million Lido DAOs (LDOs) worth approximately $6.9 million in the past 24 hours. The million-dollar LDO was transferred to a new wallet named “0x0ee7”. The firm then sent 7,366 LDOs worth $17,000 to Binance wallet.
As a result of this latest transfer, Lookonchain suggests that the trading firm will be leaving its market maker role for LDO. The report also warns that Jump Trading may sell a large portion of its LDO reserves. This warning comes after a series of transfers made by Jump Trading in May 2021 showed a similar trading pattern.
3/ Another main wallet of Jump Trading started to withdraw $LDO from exchanges on August 9, 2022.
And withdrew a total of 2.44M $LDO ($5.9M) at an average price of $2.42.
It seems like market making, and we don't know his real buying and selling price on exchanges. pic.twitter.com/6S5mmLtLrt
— Lookonchain (@lookonchain) May 18, 2023
According to the tweet, on May 10, 2021, Jump Trading purchased 5.59 million LDOs at $0.85. He spent 1,207 Ethereum (ETH) worth $4.76 million for this. One year after this acquisition, it transferred $3.36 million worth of $7.7 million to Binance and KuCoin at an average price of $2.29.
Lookonchain also shared that another main wallet owned by Jump Trading started withdrawing LDO from exchanges on August 9, 2022. The wallet had withdrawn a total of 2.44 million LDOs worth $5.9 million. The report says this could be an early sign of an LDO sale in the near future.
Lido (LDO) regains $2 psychological level
Ranking 32nd by market cap, Lido is moving sideways at 0.1% at the time of writing. Low liquidity comes after double-digit gains of over 15% on the weekly front. During the same period, Bitcoin lost 2.6%, while a significant portion of the altcoin market was in the red.
LDO’s rally was partially supported by its final vote for the next iteration on Ethereum. cryptocoin.comWe have included the reaction of the LDO price to the news in this article.
📢 The Aragon vote to implement the Lido on Ethereum V2 upgrade is now live! 📢
You can cast your vote on Lido’s most important upgrade to date here: https://t.co/GMrXGuLIdT
Assuming the vote passes, Lido V2 will go live on May 15th 🏝️ pic.twitter.com/GE3aea83fD
— Lido (@LidoFinance) May 12, 2023
In addition, LDO’s non-exchange supply has soared over the past few days, according to Santiment. Thus, it is confirmed that investors are accumulating LDO again. Moreover, the increase in volume confirms the increasing buying pressure seen in the same period.
However, with the recent positive developments, the price has surpassed an important resistance level. Technical analysis shows that the bulls may now target new highs to the upside.
Can the bulls sustain the rally?
LDO price has held steady since Jan 19 above the $1,890 – $2,056 support zone. When the price dropped to this level, it enabled the bulls to rebound. However, support broke on May 1, exposing LDO to further selling pressure.
The dip is stabilized at $1,589 and price action over the past few days pointed to a double bottom formation with a neckline just below $2,012. On May 15, the price broke the neckline resistance, leading LDO to an extra rally. However, the rally faced resistance at $2,243. This pattern will leave the bulls powerless if BTC stays below $27,000. Hence, sellers could drag LDO to the former support zone of the $1,890 – $2,056 zone.
