- Lido Finance TVL has remained in second position despite the fall of the general DeFi protocol
- The price action showed that buying and selling momentum were at odds for relevance
Lido Finance [LDO] Total value locked [TVL] has kept the staking protocol afloat among the top DeFi ecosystems. This has happened despite the massive slowdown in the wider DeFi market.
At press time, Lido DeFi TVL was $5.88 billion. In accordance DeFi LamaLido had retained its second position, just behind MakerDAO [MKR]. The performance of the protocol in the last 30 days had decreased by 33%. This suggested that deposits in the Lido protocol were not impressive, despite the increased incentives associated with it Ethereum [ETH] strike.
Read Lido Finance’s price estimate for 2023-2024
Lido Finance: Development and volume increase
Although there were declines, it was not evident in Lido’s development activity. Data from Santiment showed that development activity, which fell on November 23, had revived to a value of 11.21 at press time. This meant that the team continuously polished and refined upgrades in the protocol.
Another hike that seemed a bit important was the volume. At the time of writing, the 24-hour volume was $18.16 million. This represented an increase of 20.83% from the previous day. So there has been a relatively good number of transactions going through the Lido chain recently.
Of price and what comes next
As for the price, LDO traded at $1.10, according to CoinMarketCap. Although it was a minimal increase from the last 24 hours, the four-hour chart showed that there could be potential for a recovery.
This was because the Relative Strength Index (RSI) showed an attempt at buying power at 40.66. Thus, the bearish experience could become bullish, but there was no strong signal indicating the same.
However, the Moving Average Convergence Divergence (MACD) indicated a battle of buying and selling strength. At press time, the MACD showed that the bearish momentum was not completely gone.
This was because the buying power (blue) and the sellers (red) were at almost the same point. Nevertheless, the MACD seemed to reflect more of a decline than a rise.
As for the direction, it may be challenging for the LDO to leave its bearish state. This was due to the location of the Directional Movement Index (DMI). At press time, the positive DMI (green) was 15.05 and the negative DMI (red) was 27.21. Since this was not a close call, LDO may lose its grip on the $1.10 region
Furthermore, the attitude of the average directional index (ADX) showed an upward directional strength. With the ADX (yellow) at 26:35, there was more support for the LDO to succumb to the red control.