Lido Finance investors waiting on Ethereum Merge should read this

ambcrypto.com:

When talks of the Ethereum [ETH] Merge became an irreversible focal point of the crypto community, Lido Finance [LDO] was mostly pointed out. Not just because it is the king in the ETH staking world but because it almost always took part in a price uptick.

In 2022 alone, LDO increased more than 150%, recording a 20% gain as of the previous week. Unfortunately, for investors, the profits could not make up for the current massive plunge. 

Based on CoinMarketCap data, LDO was almost at a 50% drop from its value thirty days ago. As of 15 August, LDO was worth $2.82.

At the time of writing, it was trading at $1.79. With the earlier impressive performance, LDO investors may have anticipated a better momentum than the Lido DAO governance token currently shows.

While there has been a 48.28% increase, the daily chart showed that the sustenance of a price decrease was more than a reversal.

As per the daily chart, LDO initially increased its support level—from $1.55, it went up to $1.99. However, it had become the opposite case as LDO was on the verge of losing its support zone of $1.79.

Additionally, the On-Balance-Volume (OBV) dropped from 218.64 million on 11 September to 174.85 million at press time. This could signal that some LDO investors were lowering their expectations and withholding liquidity.

Source: TradingView

While assessing the four-hour chart, the Exponential Moving Average (EMA) showed that the short-term momentum could go lower than the current tumble.

The 50 EMA (yellow) maintained a position above the 20 EMA (blue), although slightly different. Still, the bearish signs were most likely to continue even as the Merge happens. 

Source: TradingView

A look at the Beacon chain pool revealed that LDO deposits increased up