Lido DAO (LDO) has been demonstrating promising signs of a rebound after recently testing the lower boundary of its established trading channel. Following a price dip to around $1.60, LDO appears to be setting the stage for a potential uptrend, supported by technical indicators. This is an important development, as the TD Sequential indicator has recently triggered a buy signal, suggesting the possibility of a bullish move in the coming days.

Key Levels for LDO’s Price Movement

Historically, Lido DAO has managed to recover from key support levels, such as $1.52, indicating that the token has a pattern of price reversals at these levels. The most recent attempts by LDO to break the $2.10 resistance level have been unsuccessful, leaving the token to consolidate within a price range of $1.80 to $1.90. If the current buying momentum continues, the next significant resistance point to watch is $2.40. A breakout above this level could lead to new price highs and signal the start of a more sustained upward movement.

However, should LDO fail to hold its support levels, it may face a further decline, potentially retesting lower support zones around $1.34. The key factor for Lido DAO’s future price movement will depend on its ability to maintain support at current levels and manage any shifts in overall market sentiment.

Transaction Volume and Market Activity

An important aspect of analyzing LDO’s price potential is its transaction activity, which can provide insights into market interest and sentiment. By early February 2025, the token had seen a noticeable increase in transaction volume, reaching as high as 2.83k transactions. This surge in activity coincided with a price rise to $1.87, indicating that there is growing market participation.

Periods of heightened transaction volume have historically been linked with price stability and even minor price gains for LDO. If this upward trend in transaction volume continues, it could result in further price appreciation, pushing LDO toward key resistance levels. On the flip side, a decrease in transaction activity could signal a potential price correction, as interest in the token wanes.

Profitability of Active Addresses

According to on-chain data from IntoTheBlock, a substantial portion of LDO holders are currently “Out of the Money,” with 52.40% of the total volume held at a loss. This indicates that there is significant pressure for some holders to sell, especially if prices rise. On the other hand, 37.47% of the LDO volume is in profit, and 10.13% of addresses are at breakeven. These statistics reflect a somewhat cautious sentiment among investors, as the market remains divided.

The large portion of holders “Out of the Money” could act as a limiting factor for future price growth, as selling pressure may increase if prices rise. However, the 37.47% of holders who are in profit might serve as support if the price begins to rise, possibly contributing to a sustained price increase if market conditions remain favorable.

Conclusion

Lido DAO (LDO) appears to be positioned for a potential recovery, with technical indicators suggesting a possible uptrend. Key resistance levels, such as $2.40, will be crucial in determining whether LDO can reach new highs. While market sentiment is cautiously optimistic, the balance of profit and loss among LDO holders, combined with transaction activity, will play a critical role in shaping the future trajectory of the token. Investors should remain vigilant in monitoring these key factors to assess the likelihood of further price appreciation or a potential correction.