Justin Sun Unstakes 20,000 Ethereum (ETH) From Lido Finance, What’s Going On?
October 05 2023 - 5:00PM
NEWSBTC
A crypto wallet associated with Justin Sun, the co-founder of Tron,
a smart contract platform, has moved 20,000 Ethereum (ETH)
worth roughly $32.4 million from Lido Finance, a liquidity staking
platform. Funds were transferred to Binance, the world’s largest
crypto exchange, trading volume and client count. The transaction,
executed in a single batch, was captured by The Data Nerd, an
analysis platform, and shared on X on October 5. As it is, Ethereum
(ETH) is under pressure, looking at the performance in the daily
chart. Ethereum Drops 4%, Are Bears Flowing Back? Trackers
show that the coin is down roughly 4% in three days, confirming
sellers of October 2. Notably, the daily chart has a double bar
formation with the bear candlestick of October 2, completely
reversing buyers of October 1. This arrangement suggests that bears
could be in control, especially considering the draw-down of the
past few trading days and the level of participation on October 2
when the coin slipped. Related Reading: Analyst Who Put
Bitcoin Price At $130,000 Says You Should Buy BTC Now, Here’s Why
In technical analysis, losses at the back of increasing volumes
often point to high participation. If prices are rising, then the
coin in question could rally. Conversely, a sell-off could worsen
if the bar had high trading volumes. It is also unclear whether
Justin Sun plans to sell ETH after transferring coins to exchanges.
Crypto transfers to centralized exchanges, which support many
stablecoins like USDT and others, are often associated with
sell-offs. Market participants may interpret such movements
as bearish, fueling the sell-off, subsequently heaping more
pressure on prices. ETH is now at a one-week low. Justin Sun
Shuffling ETH In 2023 The Data Nerd observes that prices fell the
last time the wallet moved ETH to Huobi, which has since rebranded
to HTX. In August, the wallet moved 5,000 ETH to HTX. The deposit
came a week before ETH prices crashed 12%. Bitcoin and
Ethereum prices fell sharply in mid-August, causing a “cascade
liquidation” that spooked investors. ETH bulls have since failed to
reverse those losses. Considering the relatively low trading
volumes in the last two months, prices are still boxed within the
August 17 trade range, a bearish signal. Related Reading: XRP,
Polygon See Month-High Volumes As Investors Show FOMO In late
February 2023, Justin Sun staked 150,000 ETH, worth roughly
$240 million, to Lido Finance. The transfer remains the largest
single-stay transaction, forcing the liquidity staking provider
to activate the Staking Rate Limit feature, capping the
amount of coins one can stake at 150,000 ETH. Lido Finance
said the feature is more of a “safety valve” that “addresses
possible side-effects such as rewards dilution, without needing to
pause stake deposits explicitly.” Feature image from Canva,
chart from TradingView
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