Lido price is holding key support and positioning for a potential 30% rally, as the protocol’s TVL surged to a record $41 billion in dollar terms amid Ethereum’s ongoing uptrend.
Summary
- Lido price is rebounding after a pullback, with buyers defending the $1.29 breakout zone; a move above $1.63 could target $1.85–$1.95, which marks 32%–39% upside from the current $1.40 level.
- Lido hit an ATH of $41 billion in dollar-denominated TVL amid Ethereum’s rally.
- Governance discussions are exploring a “triggerable” mechanism that would use stETH to buy back LDO tokens.
Lido DAO (LDO) price has recently staged an impressive ~92% rally, climbing from a $0.85 dip after a delayed breakout from a double bottom formation to a $1.63 peak. That $1.63 high marked the second higher high since the price bottomed at $0.63, solidifying a shift to a bullish trend structure. Notably, Lido price surge coincided with Ethereum (ETH) surging nearly 9%, driven by ETF inflows, bringing it close to its ATH.
Lido price is now in pullback mode, having dipped to a low of $1.32 yesterday, before rebounding to $1.40 at press time. It looks like the price is gearing up for another leg higher from here based on the strong buy-side reaction at that $1.32 low, which left a long lower wick on the daily candle. This wick formed right above the prior breakout zone ($1.29), signaling that buyers aggressively defended it, as well as above the 20-day EMA ($1.220).
Additionally, the pullback volume is much smaller compared to the breakout volume, which may mean that the drop was more about shaking out weak hands rather than a reversal.
If buyers continue to hold this support, the path toward a retest of the $1.63 high is open, with a potential breakout targeting the $1.85–$1.95 resistance zone — representing roughly a 32%–39% upside from the current $1.40 level.
However, there’s a bearish divergence on the RSI, suggesting that momentum is waning. If buyers fail to push through $1.63 with strong volume, LDO could face a deeper pullback, with $1.29 as support.
Lido’s TVL hits ATH as protocol weighs buybacks
Lido’s bullish price action comes as the protocol’s total value locked hit an ATH of $41 billion in dollar-denominated TVL, as the team announced 2 days ago. This is particularly significant amid Ethereum ongoing rally, as Lido is an ETH staking protocol that allows users to stake their ETH without locking it up directly on the network.
In the long term, Lido could see a potential bullish catalyst as governance discussions are currently exploring a triggerable LDO buyback mechanism, according to the August 14 Lido Tokenholder Update Call. Lido cofounder Vasiliy Shapovalov proposed implementing “triggerable rails” that would allow stETH to be used for LDO purchases through a system called NEST. He pointed to potential regulatory clarity in the coming weeks and targeted a framework selection within the next 2-3 months. A formal proposal is expected to be published on the Lido forum “in the coming days.”
Af Lido’s Dynamic Buyback Program is implemented, the project would repurchase LDO from the market, reducing circulating supply, which, all else equal, can create upward pressure on Lido price.
