Lido DAO Price At Critical Juncture: Can LDO Secure $1.50 Mark

Lido DAO (LDO), the leading liquid staking protocol on the Ethereum Network, had been in a downtrend and failed to reverse it.

The LDO price has traded under bearish pressure since the beginning of the year. There was an upward bounce, which was not backed by a reversal signal.

Bulls were putting their best feet forward to turn the tide in their favor. However, a small bearish onslaught could potentially keep the price confined to a bearish existence.

A descending triangle pattern was spotted, and the LDO token persisted in forming the lower low swings and stayed in a downtrend. Despite the multiple attempts to cross its downward-sloping trendline hurdle, bulls failed.

Trading below the key moving averages, the LDO token price reached its critical, pivotal support zone of $1.50 and was in a make-or-break situation.

However, the trajectory support of $1.50 was the strong demand zone and was retested multiple times. Interestingly, bulls managed to halt the gains there, and a meaningful recovery from there was already spotted in the past.

This time, the same was happening, and bulls were anticipating and trying hard to secure the region and willing for a rebound.

How is Lido Dao (LDO) Doing?

At press time, the LDOwas trading at $1.57 with an intraday drop of 9.20%, reflecting bearishness on the charts.

The pair of LDO/BTC was at 0.0000244 BTC, and the market cap was $1.40 Billion. Analysts were neutral and suggest that the LDO price may consolidate around its demand zone of $1.50 ahead.

Is the Lido DAO (LDO) Recovery Imminent?

Despite multiple attempts in the past, LDO bulls failed to attain victory and remained on the back foot. For the past few months, it has been trading in the bearish trajectory and failed to resist the selloff.

Amidst the significant recovery in the crypto market, the LDO token managed to participate in the bullish revival. It remained below the significant moving averages.

Its Open interest dropped over 8% to $85.38 Million, signifying a long unwinding move in the past 24 hours.

@Cernatul, in his X post, said that a significant change in LDO’s price action could be seen when it came out of the channel.

$LDO can be a play after we manage to break out from the channel pic.twitter.com/Q11IHxpLQP

— Cernat 🏴‍☠️ (@cernatul) July 24, 2024

The RSI curve showed a negative divergence with a reading of 35, implying sustained selling pressure on the chart.

Likewise, its technicals indicated a negative stance and signified a sell-on-rise outlook for the past sessions.

The token price has to cross the trendline barrier of $2 to break the bearish wave. Above the $2 mark, a significant trend reversal could be anticipated for the targets of $2.30, followed by $2.50 in the short term.

Majority Are In Red

According to IntoTheBlock data, only 14.17% of LDO wallet addresses were in profit. Close to 80% of holders were underwater and facing unrealized losses.

GIOM Indicator View | Source: IntoTheBlock

Selling LDO at the current price levels would result in a loss for 75% of the wallet address holders. This reduces the chances of a further selloff.

The current situation could be a buy-on-dips scenario and a significant recovery could be imminent.

The immediate support levels for the Lido Dao token were $1.50 and $1.37. In contrast, the key upside hurdle was around $2.00, followed by $2.30

Will LDO Halt The Selloff?

The Lido Dao token price slipped above the key moving averages and was trading with a bearish bias. Amidst the market-improved sentiment, the LDO token still attempted to retain the gains.

However, the LDO price reached its vital support zone, and recovery was imminent for the next sessions.

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