Lido DAO‘s volume hits $100M – Will LDO’s $0.33 support hold？

Lido DAO [$LDO] has been showing price strength since the proposed buyback program in March came to an end.

At press time, the $LDO price has surged over 17% in the past 24 hours, with trading volume jumping 129% to reach $100 million. Notably, activity and tightening of supply are also increasing.

Decoding $LDOs price rally

Aggressive buys, as indicated by the daily trading volume spike, drove the rally. Moreover, activity and fundamentals contributed to the sentiment around $LDO, leading to increased speculative trading.

Notably, the DAO has grown significantly, with Lido Finance surpassing Rocket Pool to become Ethereum‘s top permissionless staking solution. The number of active validators has now surpassed 100, slightly ahead of Rocket Pool’s count.

Source: X

Additionally, through a vote, the DAO passed their second buyback program proposal for $LDO tokens. The plan involves acquiring $LDO worth 10,000 $ETH in 1,000 $ETH increments.

Moreover, the Transfer Amount rose from 11.77 million $LDO to 48.59 million $LDO. This was more than a 4x increase in 24 hours, while Transfer Count nearly tripled from 641 to 1841. Such growth indicated growing network activity on the staking solution.

Source: Etherscan

Currently, $LDO is the largest permissionless staking solution for $ETH in terms of the number of active validators and the $ETH market cap. Its staked $ETH market cap was $22.44 billion, followed by Kelp DAO and Rocket Pool at $1.62 billion and $932 million, respectively.

While most of the metrics were bullish on $LDO presently, the price action did not have a defined directional bias.

Can $LDO sustain the breakout？

The charts showed that $LDO had printed a double bottom pattern, and price action had broken above the neckline at $0.3366. The altcoin has been trading between the neckline and the bottom at around $0.2725.

Staying above the neckline would suggest a potential market structure shift, putting the $0.68 to $0.70 zone as a target for bulls. The Cumulative Volume Delta (CVD) peaked at 4.04 million $LDO as of writing, which was the maximum buying pressure of the day.

However, a true shift would happen if $LDO flipped the $0.33-$0.36 zone into support.

Source: $LDO/USDT on TradingView

The correlation with Ethereum [$ETH] has increased to 0.85, indicating that as $ETH approaches $2,400, $LDOs price is closely following suit.

Final Summary

• Lido surged 17% in the past 24 hours due to an increase in volume and the number of active validators and a buyback program.
• $LDO price eyes $0.70, but only if bulls can keep the price above the neckline at around $0.33.