Posted:
- A whale moved 500,000 LDO to Binance.
- LDO’s exchange netflow remained negative despite the move.
As per a tweet by Lookonchain on the 29th of November, a major Lido Finance [LDO] whale transferred 500,000 tokens to Binance [BNB]. The value of the tokens was around $1.17 million as of this writing.
As of the latest update, the wallet still retained 3.6 million LDO, valued at around $8.4 million. Is the recent transaction a cause for concern, or is it just a routine market activity?
Lido exchange flow remains negative
AMBCrypto’s analysis of two critical metrics measuring the exchange flow of Lido Finance showed that there has been no significant impact of the whale’s movements.
Notably, LDO’s exchange netflow chart recorded a recent negative volume of over 376,000. This showed that more tokens left the exchange than entered.
Additionally, analysis of exchange balances showed a decrease in the total number of tokens. As of this writing, the balance was around 49.3 million.
Source: Glassnode
These exchange metrics collectively suggested a trend where more LDO was moving out of exchanges. Also, according to CoinMarketCap, the press time circulating supply was over 890 million.
Additionally, the trading volume was over 93.4 million in the last 24 hours. Thus, the impact of the whale transaction was relatively minor when these metrics were factored into the equation.
LDO’s bull trend weakens
Examining the daily timeframe chart of LDO revealed a less-than-favorable trend. Specifically, there was a series of consecutive downtrends over the past few days.
How much are 1,10,100 LDOs worth today?
At the time of writing, LDO was trading at around $2.2, reflecting a decrease in value of over 1%.
Source: TradingView
Also, the once-strong bull trend was exhibiting signs of weakening, particularly evident in the declining Relative Strength Index (RSI). This move indicated a potential shift in market momentum.