Lido DAO (LDO) is facing significant bearish pressure, with its token price plummeting nearly 10% amid a broader market downturn for altcoins. Despite a recent rebound in Bitcoin, concerns remain that LDO may revisit critical support levels.
Lido DAO Price Tests Key Support Level
Over the past week, the Lido DAO token has fluctuated around $1.16, but has since declined more than 16%. In the early trading hours of May 19, 2025, LDO’s price dropped to $0.86, correlating with Bitcoin’s decline below $106,000.
This broader trend has also affected Ethereum, which has fallen below $2,300. Analysts from QCP noted that while institutional credibility is increasing—highlighted by Coinbase’s potential inclusion in the S&P 500—market volatility remains high. They indicated that despite stagnation in spot markets, overall crypto sentiment is still bullish, especially with sustained demand for Bitcoin positions.
LDO Price Analysis and Market Sentiment
The bearish sentiment surrounding Lido DAO is partly attributed to whale activity, as major holders have been actively liquidating their positions. Recent on-chain data from Lookonchain indicates that one prominent whale sold 21.3 million LDO tokens, valued at approximately $21.6 million, within the last week.
This sell-off, along with a series of profit-taking strategies, contributed to a price reduction of more than 25% over the past week. Speculation surrounding potential insider sales further exacerbates the current bearish outlook.
Technical indicators exhibit a downtrend, with the Relative Strength Index (RSI) nearing oversold territory. Additionally, the Moving Average Convergence Divergence (MACD) indicates weakness and a bearish crossover. LDO’s ability to maintain above $0.86 could position it for resistance near $1.00, whereas a downturn could see it slip to $0.80.
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