Crypto Market Review, October 20
Lido Finance returns for the first time since the implementation of Ethereum Merge in one row with other altcoins such as Cardano
Prior to the Merge update, Lido Finance was one of the most actively traded cryptocurrencies on the market, as their DAO remained the largest Ethereum validator in the world. However, after the implementation of the update was over, Lido faced a massive increase in sales pressure, but a reversal may be around the corner.
Successful bounce
Since October 14, Lido Finance has gained 32% of its value and successfully broke through the local resistance line. However, the play in the cryptocurrency market pushed LDO back into the downtrend.
Fortunately, Lido or Ethereum bulls were able to support the asset on the way down and cause a reversal. For now, Lido is showing a nearly 6% recovery in the last 24 hours and is eyeing the 50-day exponential moving average, which acts as a barrier between bullish and bearish trends.
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In the long term, Lido is moving in the downturn since the first listing on centralized exchanges. The recent Merge rally did not fundamentally help it, which is why the upcoming move up is an important test of the asset’s long-term stability.
Bitcoin flows from exchanges
According to on-chain data, investors are rapidly moving BTC from centralized exchanges, which could signal the end of the accumulation period the first cryptocurrency has been in since June. The low volatility, limited price performance and predictability of the asset is a perfect recipe for the beginning of long-term accumulation.
After entering the rangebound, exchanges saw a sharp increase in the percentage of BTC supply, confirming the beginning of accumulation. Since June, supply on exchanges has gradually decreased, but in recent days, investors have withdrawn the largest amount of tokens seen in the last four months.
Adding the extremely low volatility of BTC and the negative online flow, we will most likely see a significant move of the first cryptocurrency in the market for the foreseeable future. For now, Bitcoin’s volatility remains at an extremely low level as the digital gold has hovered in the 2% range.
The Altcoin market is showing some positivity
Although it is not yet clear what could have launched the mining of most digital assets in the market, social metrics previously flashed green, indicating that most crypto market players began to express more positivity compared to what we saw a week ago.
Expectations of a Q4 setback are most likely the main reason behind the increase in bullish sentiment, which is already projected in the cryptocurrency market. It is important to mention that most digital assets, including Cardano, were heavily oversold and their performance today is most likely a result of the prolonged and heavy selling pressure the cryptocurrency market has faced over the past two weeks.
