Lido DAO (LDO), the liquid staking protocol on the Ethereum Network, is currently facing a critical juncture as its price struggles to break out of a downtrend. Despite bullish efforts, the token has been unable to reverse its downward trajectory and has formed a descending triangle pattern, indicating a bearish existence. The LDO token has reached a pivotal support zone of $1.50, which is a make-or-break level for its price. Bulls have previously managed to halt losses at this level and initiate a recovery, and they are now working hard to secure the region and spark a rebound.
At the time of writing, the LDO token is trading at $1.57, reflecting bearishness on the charts with a 9.20% drop for the day. Analysts suggest that the price may consolidate around the demand zone of $1.50 in the near future. Despite multiple attempts, LDO bulls have failed to gain the upper hand and resist the selloff. The token has remained below significant moving averages and has seen a drop in open interest, indicating selling pressure. The RSI curve shows a negative divergence, and technical indicators also point towards a sell-on-rise outlook.
For a significant trend reversal, the LDO token needs to break the trendline barrier at $2. If successful, targets of $2.30 and $2.50 can be anticipated in the short term. Currently, only 14.17% of LDO wallet addresses are in profit, with the majority of holders facing unrealized losses. This reduces the chances of further selloff and presents a potential buy-on-dips scenario for investors. Immediate support levels for Lido Dao token are at $1.50 and $1.37, with the key upside hurdle at around $2.00, followed by $2.30.
While the LDO token is currently trading with a bearish bias, there is hope for a recovery as it reaches its vital support zone. The market sentiment has improved, and the Lido DAO token may attempt to retain its gains and initiate a recovery in the next sessions.