Photo by BeInCrypto <\/p>\n
LDO, the native token of leading Ethereum staking protocol Lido, has emerged as today\u2019s top gainer, climbing 7% in the past 24 hours on strong trading activity.\u00a0<\/p>\n
Positive readings from its on-chain and chart data reinforce the bullish momentum, hinting at the likelihood of sustained gains in the near term. However, there is a catch.<\/p>\n
Futures open interest tied to the LDO token has climbed with the price over the past day, reflecting increased inflows and bullish market positioning. According to Coinglass, this currently stands at $210 million, up 5% in the past 24 hours.<\/p>\n
For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya\u2019s Daily Crypto Newsletter\u00a0here<\/a>.<\/p>\n Open interest tracks the total number of outstanding futures and options contracts that have not yet been settled. When it rises alongside an asset\u2019s price<\/a> like this, it signals that new money is flowing into the market and traders are actively opening fresh positions.<\/p>\n This trend signals that LDO buyers are increasingly committing new capital in anticipation of further upside. If this trend holds, it could provide the token with additional support, further strengthening the rally.<\/p>\n Moreover, on the daily chart, readings from the LDO\u2019s Elder-Ray Index show that it has flipped back above the zero line to return a positive value for the first time since September 21.<\/p>\n The Elder-Ray Index measures the balance between buying and selling pressure in the market by tracking the difference between bullish power (buyers) and bearish power (sellers). A reading above zero indicates that bulls are in control, while a drop below zero signals bear dominance.<\/p>\n For LDO, the index flipping back into positive territory highlights a decisive shift in momentum. It suggests that after nine days of sellers holding the upper hand, buyers have regained<\/a> strength and are now driving price action.<\/p>\n Despite the price optimism, Lido\u2019s network data paints a concerning picture. Staking activity on the protocol has been declining<\/a>, with its market share now at a three-year low of 23.4%.<\/p>\n LDO Futures Open Interest. Source: Coinglass<\/a> <\/p>\n
LDO Elder-Ray Index. Source: TradingView<\/a> <\/p>\n
Lido Staking Marketshare. Source: Dune Analytics <\/a> <\/p>\n