Lido DAO and Convex Finance Lead the Market Dip With a 15% Fall

Key Insights:

• Lido DAO noted a 20.56% fall in the span of 24 hours.
• Convex Finance continued its downtrend with a 21.4% dip.
• Bitcoin and Ethereum also dropped below the $21k and $1.4k mark today.

The unrelenting bearishness continues to prevent any recovery in the crypto market, with altcoins noting higher falls with every passing day.

Today the brigade was led by Lido DAO and Convex Finance, with Bitcoin and Ethereum supporting the downtrend by falling to $20,934 and $1,381, respectively.

Lido DAO Goes Down

The altcoin, trading at $1.32, declined by over 20.5% in the last 24 hours after a week of sideways movement. Although the decline isn’t ideal, it isn’t as big a deal for the cryptocurrency since LDO was one of the best-performing coins this month.

From the lows of the June crash, LDO shot up by almost 260% in just 16 days, even hitting the $2 mark at its highest.

However, the future isn’t seemingly in favor of cryptocurrency as price indicators are taking a turn for the worse. The Bollinger Bands are on the verge of converging, which indicates that volatility is about to reduce.

Although it is generally a good thing, at the moment, this could cause slower recovery. Plus, if the candlesticks lose the support of the basis, the price will go down.

Secondly, the MACD is also about to witness a bearish crossover which will change the trend once the red bars extend below the neutral line. Should that happen, LDO is looking at $1 as its next critical support.

Convex Finance Follows Suit

Right behind Lido DAO was the native token of Convex Finance, CVX, which did not spare its investors from losses either.

CVX decreased by 21.41% since yesterday and invalidated a significant amount of its 123.77% recovery that it witnessed last month, rising from the June lows.

Going forward, CVX might continue down this path, figuratively and literally, since the price indicators have already flipped into a downtrend.

The Parabolic SAR was the first sign as it moved above the candlesticks, indicating the beginning of a downtrend.

This was followed by the fall of the Relative Strength Index (RSI) into the bearish zone. The declining prices have created an atmosphere where selling pressure is taking over the altcoin resulting in a higher price drop.