LDO is trading near $0.29 after a 94% slide, with analysts watching Ethereum's EIP-8361 proposal and a key $0.47 resistance level for signs of a trend change.
Lido DAO's LDO token could recover more than 1,700% from current levels, according to analyst Crypto Patel, who said on August 6 that the token is trading in a high-risk accumulation zone after falling nearly 94% from its previous all-time high. LDO was around $0.29, near his proposed buy area of $0.275 to $0.24, but he said the bearish structure remains in place inside a multi-year descending channel until the token reclaims $0.47 on a weekly close. A weekly close below $0.23 would invalidate the setup. Recent weakness has been tied to Ethereum's proposed EIP-8361, which developer Jerome de Tychey said on August 5 is designed to stop staking (locking crypto to earn rewards) from expanding without limit. Analyst Ted Pillows said fears that lower ETH staking rewards could hurt demand for liquid staking tokens such as stETH likely contributed to LDO's sell-off, while noting the proposal is still an early draft. LDO is about 25% above its June 25 low of $0.235, but remains down close to 18% over seven days and roughly 27% over two weeks, according to CoinGecko. Trading volume was near $50 million, down 43% from the previous day. Crypto Patel said a recovery case would strengthen if LDO closes above $0.47 weekly, opening a path toward $1.50, $2.50 and eventually near $4, supported by Lido's lead in Ethereum liquid staking and a shrinking supply of tokens left to unlock if ETH rises back above $3,000.