Lido DAO (LDO) is a key player in Ethereum’s Liquid staking protocol. Its token’s price continued experiencing selling pressure and hovering near the demand zone of the $1 mark. Its short-term trend was bearish, and the token continued to exhibit a selloff from the upper zone.
Capped inside a descending triangle pattern, the LDO token was endured in forming the lower low swings. It exhibited a severe correction of over 65% in the past three months.
LDO Price at Press Time
The LDO price flaunted a bearish market trend. It saw a notable decline in its value and market cap amid the broader market volatility.
Fueled by the bearish sentiment among the investors for LDO, it failed to sustain near the 50-day EMA mark and continued facing rejection, resulting in a tumble.
At the time of writing, the token price traded at $1.11, down by 0.90%, displaying flat moves on the chart. Moreover, the trading volume saw a drop of over 30%, implying lower optimism.
Ranked 70th in terms of market cap, the LDO token had a total supply value of 1 billion. Its volume-to-market cap ratio was 0.101.
Lido DAO Token Looks Bearish: Could It Switch the Trend?
After a significant correction, the Lido DAO token price reached its vital support zone of $1 and was hovering around it. Still, no signs of bounceback were displayed, and the token remained under the sellers’ control.
Despite the market recovery in the past 24 hours, the LDO token price remained flat and reflected no buying interest and lower investor confidence, which might extend its bearish leg below the $1 mark soon.
@Munib Riaz, in his tweet, said that the LDO token price has reached its pivot near $1 and can see a pullback ahead.
The Momentum Indicators (RSI and MACD) guided a bearish overview. The RSI curve had a reading of 30, which looked oversold, while the MACD line was below the signal line, conveying a bearish projection.
Undoubtedly, both indicators directed the bearish projection, but a bounce is still due, which can be seen shortly ahead.
Total Value Locked (TVL) Witnessed a Drop
According to DefiLlama, Lido DAO’s Total Value Locked (TVL) saw a significant decline and was valued at around $24.82 Billion.
This significant decline in TVL signified a decrease in liquidation and less capital in the ecosystem, which might affect profitability and growth.
Also, this significant drop in TVL is a sign that investors have not looked very confident, hence resulting in the token’s underperformance in the past few months.
Futures Open Interest Reached To Monthly Lows
Fueled by the selling pressure, the investors and traders who had made long positions in the Lido DAO token looked in panic and continued to unwind their positions, resulting in a significant price downfall.
Moreover, Open Interest (OI) noted a drop of over 5.20% and fell to $55.62 million in the past 24 hours.
Notably, if the Lido DAO token price succeeds in holding gains around the $1 mark, it can trigger a recovery. It might go toward the upside resistance zone of $1.40 and then $1.80 ahead.
On the other hand, if the token fails to secure the $1 mark, a free fall can be seen ahead.
Amid making multiple bottoms around the $1.50 mark, LDO bulls failed to secure and drove the bearish rally below the $1 mark and made a fresh 52-week low this week.
