In this bearish market sentiment, Nansen’s CEO, Alex Svanevik has made a significant move that could trigger a sharp price drop in Lido DAO (LDO). On September 6, 2024, the on-chain analytic firm Lookonchain made a post on X (previously Twitter) that the CEO had dumped 3 million LDO tokens worth $2.89 million to Coinbase.
Nansen CEO’s Bearish Move
According to the report, Alex is an initial DAO member of the Lido project and received 5 million LDO tokens worth $4.9 million on December 17, 2024. However, before the market sentiment turned bearish and major cryptocurrencies experienced notable price drops, he dumped 60% of his total LDO holding.
This massive dump by the CEO is 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 the expert technical analysis, LDO appears bearish and is currently trading near a crucial support level of $0.90. If the price falls and also closes a daily candle below this level, there is a high possibility it could drop by almost 50% to the $0.47 level in the coming days.
However, this price prediction is based on the higher time frame, and this thesis will only work if the LDO weekly candle closes below the $0.90 level, otherwise, it will be invalid.
Key Bearish Metrics
CoinGlass’s LDO Long/Short Ration chart also supports this bearish outlook. This ratio currently stands at 0.865, indicating a potential bearish trend. Meanwhile, LDO’s open interest has increased by 2.10% in the last 24 hours, indicating growing interest from traders amid the price decline.
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
At press time, 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 bearish market sentiment.
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