Lido DAO’s 13% rally targets $0.46 – But THIS risk remains for LDO

Lido DAO [LDO] maintained an ascending channel over the past month. After three days of weakness, the altcoin recovered and resumed its upward move.

LDO held the $0.35 support level and reached a two-month high of $0.40. At press time, LDO traded near $0.39 after gaining 13% over 24 hours.

Meanwhile, Trading Volume surged 108% to $61.1 million. Market Capitalization also increased 13%, returning LDO to the top 100.

Rising Trading Volume and Market Capitalization indicated stronger participation and fresh capital entering the market.

Did the governance vote help LDO?

A recently concluded governance vote coincided with stronger market demand. The proposal received unanimous support from participating voters, with 24.4 million LDO backing it.

The upgrades proposed new versions of the Community Staking Module and Lido’s Curated Module. They aimed to improve the protocol’s staking infrastructure and validator management.

The voting period attracted greater market attention, which may have supported renewed demand for LDO.

Are traders expecting more gains?

Speculators remained active during the voting period and after its conclusion. Over the past day, Open Interest rose 8% to $86.3 million. Derivatives Volume also climbed 74% to $105 million.

Rising Open Interest and Derivatives Volume showed greater participation as traders opened additional leveraged positions. The Long/Short Ratios on Binance and OKX remained above one. Binance’s Top Trader Long/Short Ratio led at 2.0.

However, the broader Long/Short Ratio remained below one, showing that bearish positioning still dominated overall.

Are whales selling the rally?

Interestingly, whales returned after remaining less active for over a week. CryptoQuant’s Spot Average Order Size showed large whale-sized transactions.

The orders reappeared after LDO crossed $0.38. However, the metric alone could not determine whether whales bought or sold.

By contrast, Spot Netflow turned positive on the 21st of July after two consecutive negative readings.

At press time, Spot Netflow stood near $27,000, indicating that exchange inflows exceeded outflows. This could increase selling pressure, although it did not prove that whales made those deposits.

If larger holders sell during an uptrend, they could weaken LDO’s market structure and trigger a retracement.

Can LDO hold $0.40?

LDO maintained strong upward momentum as demand recovered. The Positive Directional Indicator [+DI] rose to 41, while the ADX reached 59.

A rising +DI indicated bullish direction, while the elevated ADX confirmed the trend’s strength.

If demand holds, LDO could reclaim $0.40 and target the $0.46 resistance level. However, stronger whale selling could push the altcoin back toward the $0.35 support level.

Final Summary

• LDO surged 13% and reached a two-month high of $0.40 before easing to $0.39.
• Rising activity supported LDO, although positive Spot Netflow introduced renewed selling risk.