Lido DAO price stands safe from falling below $1.500 solely due to its investors’ HODLing

fxstreet.com 07 July 2023 04:42, UTC

Analytics

Lido DAO price, despite observing a near 14% crash, is still standing above the multi-month support of $1.647.
$LDO holders have been standing strong since May, with the supply among mid-term holders rising by 16%.
This HODLing has resulted in the network observing minimal realized losses since May and could also support recovery if this behavior continues.

Lido DAO price has noted a macro sideways movement since May, with the current value of the asset sitting only 4% above its worth from two months ago. While the volatility in the market brought losses and profits to many, the most consistent investors that stood throughout the turmoil happened to $LDO holders.

Lido DAO price slips on the charts

Lido DAO price, trading at $1.940 at the time of writing, declined by 13.71% in three days. Even though the fall did not take away much from the second half of the June rally, it did bring the altcoin closer to the five-month-old support level of $1.647. This altcoin has kept above this line, bouncing off of it since January this year and will continue to do so with the help of its investors.

$LDO/USD 1-day chart

While most of the crypto asset investors resorted to either offloading their holdings or making profits at the earliest, $LDO holders chose to hold on to their assets. This is visible in the transfer of supply from short-term holders (STH) to mid-term holders (MTH).

The former constitute the addresses that only hold on to their tokens for less than a month. The mid-term holders, on the other hand, tend to keep their supply intact for more than a month but less than a year.

Back in May, the share of both these cohorts was pretty much equal, with STH holding 21% of the entire circulating supply while MTH held about 25% of the supply. Over the course of the next two months and come July, STH now holds only 4% of all $LDO, while MTH now commands more than 41% of the entire supply.

Lido DAO supply distribution

This is proof that investors held on to their $LDO throughout the recent turmoil in hopes of a solid recovery in the future. This paid off as Lido DAO price stood safe from excessive decline and realized losses also remained at a low.

Lido DAO network realized losses/profits

Going forward, $LDO holders need to maintain this attitude as HODLing through the bear market historically has resulted in solid gains. However, should Lido DAO price lose the five-month-old support line and slip below $1.500, these holders might change their stance to offset their losses.