Lido DAO Faces Pressure: Could LDO Drop to $0.45?

Lido DAO's governance token LDO faces renewed selling pressure as a major whale offloads a significant amount of LDO tokens. This development raises concerns about the possibility of LDO declining further, potentially dropping to the $0.45 mark. Despite some signs of buyer interest, the overall trend appears bearish, highlighting a critical moment for LDO in the market.

Key Takeaways

A significant whale transfer of 6.2 million LDO tokens to Binance has raised concerns about renewed sell-side pressure in the market.
LDO has broken below a key support level at $0.7326, intensifying the downtrend and shifting focus to the $0.4560 demand zone.
Short positions have increased significantly, with 57.61% of positions now bearish, indicating a growing expectation of continued price declines.
Open Interest has dropped by 4.16%, reflecting reduced speculative trading and apprehension among investors.
The market remains vulnerable to further downside unless buyer activity strengthens significantly at critical support zones.

Whale pressure rises on LDO: Is $0.4560 the next stop?

LDO Downtrend Intensifies After Breaking Key Support

LDO is now trading within a steep descending regression channel, and the repeated formation of lower highs indicates that sellers are clearly in control. The slope of this channel suggests that the momentum is accelerating downwards, making a recovery increasingly unlikely. The recent drop below the support level of $0.7326 eliminated a critical support structure that had previously withstood earlier market declines. Attention is now turning to the $0.4560 demand zone, where buyers may potentially engage.

The Relative Strength Index (RSI) is currently at 30.28, with its signal line at 36.93, indicating a weak market with no clear reversal signals. Each attempt at upward movement lacks momentum quickly, reinforcing the sellers' dominance until buyers can reclaim levels above the breached support.

LDO price action Source: TradingView

Increased Aggressiveness Among Short Sellers

The bearish trend has gained traction as short positions have risen to 57.61%, which signals a clear tilt toward selling. This shift reflects growing conviction among traders who expect continued declines rather than a market recovery. Such positioning coincides with the overall weakness of LDO, further solidifying seller confidence. In contrast, long positions stand at 42.39%, indicating that buyers are reluctant to increase their holdings in the current unstable market.

This imbalance is causing additional pressure on bullish sentiment, as bulls require a structural improvement and a decrease in short interest to regain momentum. Market positioning remains skewed towards extended decline unless a strong catalyst can disrupt this trend.

Market positioning snapshot Source: CoinGlass

Declining Open Interest Indicates Reduced Speculation

The Open Interest has decreased by 4.16% to $60.07 million, illustrating a waning speculative appetite as traders pull back during LDO's downturn. This decline aligns with the cautious sentiment prevailing in the market, as traders prefer to limit risk instead of aggressively entering new positions.

Lower Open Interest also tends to reduce short-term volatility potential; with fewer open positions, the likelihood of sharp price swings diminishes. This combination of falling Open Interest and an increase in short dominance has reinforced the bearish context for derivatives markets. Moreover, this decrease indicates that traders are still looking for market stability and are hesitant to make significant trades until LDO reaches clearer demand areas or establishes stronger reversal signals.

Open Interest analysis Source: CoinGlass

In conclusion, LDO is currently facing significant downward pressure. The combination of the descending regression trend, a bearish Long/Short Ratio, and a decrease in Open Interest all signal potential further losses ahead. Although buyer absorption is indicated by Taker Buy CVD, the overall market context remains weak and unlikely to counteract the selling momentum effectively. The focus is now on the $0.4560 demand zone as a critical target prior to any rebound. If buyers can defend this level effectively, a potential stabilization of the price could occur; however, the market needs to complete this downward move as indicated by the major signals currently in play.

Final Thoughts

Traders should closely monitor the evolving situation surrounding LDO, especially as the market grapples with these significant developments. Understanding the balance of buyer and seller pressures will be crucial in determining the next movement in LDO's price.