Key insights
Lido price rebounds from a $1.32 low, holding $1.29 support, as buying momentum emerges after a recent 92% rally from $0.85 levels.
Lido protocol’s total value locked reached $41 billion in dollar terms, supported by Ethereum’s price strength and rising staking demand.
Governance discussions explore a buyback program using stETH for LDO purchases, aiming to reduce circulating supply and support market value.
Lido DAO’s price is holding above a key support level as the protocol’s total value locked reached a record $41 billion in dollar terms. The move follows Ethereum’s continued uptrend, which has fueled strong buying interest in the staking protocol’s token.
LDO recently climbed nearly 92% from a $0.85 low to a $1.63 peak after breaking out of a double-bottom formation. The rally marked the second higher high since bottoming at $0.63, signaling a bullish trend shift.
After hitting $1.63, the price pulled back to $1.32 before rebounding to $1.40. Buyers defended the $1.29 breakout zone, which also aligns with the 20-day EMA at $1.22. Lower trading volume during the pullback suggests the drop was more of a consolidation than a reversal.
Resistance Levels in Focus
If support holds, the price could retest the $1.63 high. A breakout above that level may open the path toward the $1.85 to $1.95 resistance zone, offering a potential 32 to 39% upside from current levels.
Source: Tra d ingView
However, technical indicators show a bearish divergence in the RSI, suggesting momentum has slowed. Failure to break $1.63 with strong volume could see the price revisit $1.29 support.
The record $41 billion TVL comes as Ethereum’s rally boosts staking demand. Lido enables users to stake ETH without locking it directly on the network, making it a leading player in the liquid staking space.
Governance Considers Buyback Mechanism
Alongside the price action, governance discussions are exploring a “triggerable” buyback mechanism. Proposed by cofounder Vasiliy Shapovalov, the system would allow stETH to be used for LDO purchases through the NEST framework.
A formal proposal is expected on the Lido forum in the coming days, with framework selection targeted within two to three months. The buyback program would aim to reduce LDO’s circulating supply, which could add upward pressure to the token’s value over time.
