Lido DAO (LDO) Struggles to Find Footing, Engagement on the Decline

Lido DAO was struggling at the lows to find a firm footing. LDO experienced a sharp crash in the 1st week of August, dropping over 38% through the week.

Lido DAO (CRYPTO: LDO) experienced a steep 38% decline in the first week of August, leading to a drop to multi-month lows. The price struggled to find firm footing at lower levels on Monday.

At press time, Lido DAO traded at $1.09, showcasing a positive intraday development of 2.44%. The price found some support at higher demand levels, but the loss in the active addresses curve highlighted waning interest.

Lido DAO Provides Staking To A Wider Range Of Users

Lido DAO provides staking to a wider range of users by pooling stacked ETH from multiple users. It is a decentralized autonomous organization (DAO). With a live market capitalization of $986.388 Million, it ranks 64th in the crypto space.

LDO price experienced a steep decline from highs above $3.3, showcasing over 38% losses in the first week of August. The price dropped to multi-month lows, highlighting strong bearish control.

After hitting lows of $0.98, LDO began experiencing some buying pressure from lower levels. The price showed some recovery from the demand zone, highlighting a potential bullish effort.

However, despite the price rise, there was a steep decline in the number of active addresses. This indicated the investors' waning interest in Lido DAO.

As per the data obtained from Santiment, the 24-hour and the 7-day active addresses curves seemed to be headed downward. The decline in the active addresses highlighted the investors' confidence loss.

The active addresses reveal the total number of unique users participating in a transaction in a given period. An increased active address indicates an increase in demand.

Moreover, the transaction volume dropped by 7.89% a day to $53.23 Million. This highlighted a drop in demand despite the intraday price rise. The volume to market cap ratio at 5.3% suggests low volatility.

Is Lido DAO A Sell On Rise For Next Week?

The Lido DAO price seemed to struggle for a firm establishment near the $1 psychological level.

The drop in the transaction volume and active addresses highlighted the waning interest of the investors in the short term. It may again allow bearish forces to act at higher levels.

On the higher side, the $1.2 level may act as an immediate resistance and try to halt LDO’s momentum. The price hovered below all the key exponential moving averages, indicating short-term and long-term bearishness.

On the lower side, the breakdown of the $1 level could further fuel a bearish trend continuation towards the $0.8 level.

However, until the $1 is defended, the bulls may attempt to turn the tables in their favor. The technical indicators leave a bearish note on a combined analysis.

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