The price of Lido DAO experienced a significant drop as the broader cryptocurrency market corrected itself, influenced by Bitcoin’s dip to near $70,700.

On October 31, the price of Lido DAO fell over 10% to trade around $1.05 before slightly recovering. This decline wiped out most of the gains acquired from the recent rise from $0.99 on October 28 to $1.15 on October 30. The crypto market’s reaction to the U.S. Personal Consumption Expenditures (PCE) index for September played a crucial role in this sell-off.

Bitcoin also responded negatively to the PCE index. While Lido DAO’s decline mirrored dips in other altcoins, data suggests that a whale’s sell-off of Lido DAO tokens added to the downward pressure.

Whale Activity and Market Impact

According to data, a whale address that had held Lido DAO for three years sold off its entire holding on October 31. The wallet address 0x9244 swapped all 458,860 Lido DAO tokens, worth $489,600, for 181.6 Ether. This sale occurred shortly before Ether’s price dipped to lows of $2,549, marking a 24-hour decline of nearly 5%.

Despite the sale, the whale incurred a loss, as their average accumulation price over the past three years was $2.50 per token, resulting in a loss of approximately $900,000.

Current Market Sentiment

Lido DAO’s latest price slip leaves holders down 41% over the past year, with the token in a downtrend since reaching $3.78 in early January 2024. On-chain data reveals that 91% of Lido DAO holders are at a loss at current prices, while the remaining 9% are breaking even. Further declines could push more holders into the red.

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