LDO Price Drops 5.74% Despite Record TVL as Lido DAO Tests Critical Support

Quick Take

• LDO currently trading at $1.30 (-5.74% in 24h)
• LDO RSI at 56.36 suggests neutral momentum despite recent decline
• Record TVL of $38.17 billion contrasts with short-term price weakness
• Market cap reached $1.28 billion amid mixed technical signals

What’s Driving Lido DAO Price Today?

The LDO price has experienced significant volatility over the past week, currently facing downward pressure despite strong fundamental developments. Most recently, on August 17, Lido DAO achieved a self-reported market capitalization of $1.28 billion, with LDO trading 3.4% higher against the US dollar at that time.

However, this positive momentum was short-lived. The August 14 market overview revealed concerning technical developments, as the LDO/USDT pair experienced high volatility, dropping sharply from $1.528 to $1.318 after breaching key support levels. Technical indicators at that time showed oversold conditions, which appears to be continuing into the current trading session.

Despite the recent price decline, the underlying fundamentals for Lido DAO remain robust. On August 13, LDO experienced a remarkable 55% price surge driven by increased on-chain activity and anticipation of an upcoming tokenholder update. The same day brought news that Lido DAO’s Total Value Locked hit a record $38.17 billion, indicating growing trust from investors and strengthening the protocol’s position in the liquid staking market.

The disconnect between strong fundamentals and current price action suggests that short-term market dynamics are overshadowing the positive developments in Lido DAO’s ecosystem.

LDO Technical Analysis: Mixed Signals Amid Consolidation

Based on Binance spot market data, Lido DAO technical analysis reveals a complex picture with both bullish and bearish elements competing for control.

The LDO RSI currently sits at 56.36, placing it firmly in neutral territory. This reading suggests that neither buyers nor sellers have gained decisive control, despite the recent 5.74% decline. The RSI’s position above 50 indicates that bullish momentum hasn’t been completely extinguished.

Lido DAO’s moving averages paint a more optimistic picture. The token trades above its 50-day SMA at $1.03 and 200-day SMA at $1.03, maintaining its longer-term bullish structure. More importantly, LDO sits above the 20-day SMA at $1.19, though it has fallen below the shorter 7-day SMA at $1.41, indicating recent weakness.

The MACD for Lido DAO shows bullish momentum with a reading of 0.1114 above the signal line at 0.1073. The positive MACD histogram of 0.0042 suggests that bullish momentum is strengthening, which could signal a potential reversal from current levels.

Lido DAO’s Bollinger Bands analysis shows the token trading in the upper portion of the bands with a %B position of 0.6145. The LDO price sits between the middle band at $1.19 and upper band at $1.66, suggesting room for upward movement if buying pressure returns.

Lido DAO Price Levels: Key Support and Resistance

Critical Lido DAO support levels are now being tested as the LDO price faces downward pressure. The immediate support zone sits at $0.85, which represents a significant level that has historically provided buying interest. Below this, the strong Lido DAO support level at $0.69 would mark a more concerning breakdown.

On the upside, LDO resistance remains formidable at $1.63, a level that has proven challenging to overcome in recent trading. This resistance level aligns with previous attempts to break higher and represents the gateway to further gains toward the 52-week high of $2.38.

The current pivot point at $1.33 sits just above the current LDO price, suggesting that any bounce would need to reclaim this level to shift the near-term bias back to bullish. The 24-hour trading range of $1.42 to $1.28 shows significant intraday volatility, with an Average True Range of $0.12 indicating continued price swings.

Should You Buy LDO Now? Risk-Reward Analysis

For aggressive traders, the current LDO price presents a potential opportunity near key support levels, but with significant risks that must be carefully managed.

The risk-reward setup favors buyers if LDO can hold above the $1.28 low from the recent 24-hour range. A stop-loss below $1.25 would limit downside risk, while a target toward the $1.63 resistance offers approximately 25% upside potential. This creates a favorable 3:1 risk-reward ratio for those willing to take calculated risks.

Conservative investors might wait for clearer technical confirmation before entering positions. A decisive break above $1.35 and reclaim of the 7-day SMA at $1.41 would provide stronger bullish signals for the LDO price trajectory.

Long-term holders should consider that Lido DAO’s record TVL of $38.17 billion provides fundamental support for higher valuations over time. The disconnect between strong protocol metrics and current price action may present accumulation opportunities for patient investors.

Based on Binance spot market data, the high trading volume of $36.8 million indicates significant interest at current levels, suggesting that major moves in either direction could occur quickly.

Conclusion

The LDO price faces a critical juncture at $1.30, testing key support levels despite strong fundamental developments for Lido DAO. While the 5.74% decline shows near-term weakness, the combination of record TVL, neutral RSI readings, and bullish MACD signals suggests the selling pressure may be nearing exhaustion. Traders should watch for a decisive break above $1.35 to confirm renewed bullish momentum, while keeping stops below $1.25 to manage downside risk in the next 24-48 hours.

Image source: Shutterstock