Amid the rising volatility, Lido DAO token holds a critical support level. Overcoming nine days of constant sell-off, will this recovery in LDO price revisit $2.38?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
With the crypto market standing at a crossroads, the DeFi tokens are under immense pressure. Struggling to make a bullish comeback, Lido DAO LDO $1.07 24h volatility: 1.1% Market cap: $963.91 M Vol. 24h: $70.95 M is facing massive supply inflows.
Down at its crucial support level, LDO is trading at $1.56, with an intraday pullback of 1.39%. Will the increased supply pressure drop LDO to its $1.00 psychological support? Let’s find out.
In the daily chart, the LDO price action reveals a bullish failure to break above the $2.38 mark. This resulted in a streak of 9 consecutive bearish candles, leading to a 36% drop.
The correction phase in LDO price tested the 50% Fibonacci level at $1.49. Along with the crucial support, the downfall also put additional pressure on the local support trendline.
With underlying bullish demand, the support at this confluence led to a 5.4% rebound in LDO price on Monday. However, the bullish recovery failed to surpass the 61.80% Fibonacci level, followed by a Doji candle.
The intraday pullback now hints at a potential evening star reversal, which could put additional pressure on crucial support and increase the chances of a breakdown rally. If sellers continue to dominate, a drop below $1.50 could accelerate losses toward lower support zones.
Amid the bullish failure, Lido DAO token is flushing out its top investors. Recently, a SpotOnChain X post revealed that F2Pool and Stakefish founder Chung Wang has sold off 2.5 million LDO tokens for $4.5 million USDT.
Chun Wang appears to accelerating $LDO sales!
F2Pool & Stakefish founder Chun Wang (@satofishi) has sold 2.5M $LDO for 4.5M $USDT in the past 14 days.
Since returning on Nov 21, 2024, after a 10.5-month break, he has sold 6.1M $LDO for 10.42M $USDT at ~$1.708, with selling… https://t.co/pdHBABt4ay pic.twitter.com/G096ypRQ5F
— Spot On Chain (@spotonchain) February 12, 2025
The sale occurred over the past two weeks, coinciding with LDO’s pullback phase. Since returning on November 21, 2024, after an 11-month break, Wang began a selling spree.
His initial sale included 6.1 million LDO tokens for $10.42 million USDT. Once an initial LDO DAO member, he had received 20 million LDO tokens.
Currently, he holds just 2.5 million LDO tokens, valued at $3.88 million USDT. This large-scale distribution raises concerns over potential further sell-offs and market liquidity challenges.
As per a recent X post by Ali Martinez, the bullish influence on LDO is gradually returning. Despite the massive sell-off from a key founding member, LDO is preparing to rebound within a parallel channel.
#Lido $LDO is showing signs of a potential rebound as it tests the lower boundary of its parallel channel, with the TD Sequential flashing a buy signal on the 12-hour chart! pic.twitter.com/6Apz7fLmVp
— Ali (@ali_charts) February 11, 2025
This bullish reversal is based on the TD Sequential indicator, which is flashing a buy signal on the 12-hour time frame. If LDO manages to sustain above key moving averages, it could invalidate the bearish outlook and confirm a potential recovery trend.
As LidoDAO stands at a crucial crossroads, price action analysis and investor sentiment suggest a possible bullish comeback. In such a case, the Fibonacci levels paint the upside price targets at $1.95 and $2.38.
However, closing above the 61.80% Fibonacci level at $1.66 is crucial for bullish sustainability. On the flip side, the crucial support levels below the $1.50 psychological mark remain at $1.33 and $1.16.
A failure to hold these levels could open the gates for a deep decline toward $1.00, further intensifying bearish pressure.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
