Lido DAO, a DeFi platform offering liquid stalking services, is stuck in a slump, and traders are concerned about when a market rally might come. Popular market analyst Ali Martinez today shared technical indicators showing weakness in LDO, the native token powering Lido’s DeFi staking platform. The analyst warned that the asset could experience a further downturn before experiencing a successful breakout and market rally.
LDO Stuck in Descending Channel
The 1-D trading chart shared by Ali shows that LDO is clearly trapped in a descending channel, with lower highs and lower lows controlling the bearish momentum. LDO, which currently trades at $0.9306, has been down 12.45% over the past month. The token has been locked in a 73-day decreasing pattern, which began on August 13, 2025, though stabilized by mild accumulations that have made LDO record a 9.3% surge over the past week. The continued domination of selling pressure is evident, and the token’s failure to hold above $1.22 and $1.0 resistance levels confirms that the wider downtrend remains intact.
The formation of the descending channel shows that LDO’s price compression continues amid the recent dramatic plunge in the broader crypto market after the US announced new trade tariffs on Chinese imports. The market crash caused BTC, ETH, and multiple cryptocurrencies to currently witness significant corrections.
According to Ali, LDO is still set to experience further declines from the current level $0.9306 to $6.0 until it finds strong support at the psychologically crucial $0.45 level, where buyers step back in, showing strong buying interest.
Lido Indicates Bullish Signals Amid Rising Demand for Staking Offerings
On-chain metrics show that LDO has been in a long accumulation zone between $0.60 and $0.45 since 2023. Traditionally, every revisit to this region attracts a robust purchasing frenzy, affirming it as a strong demand zone. A move to this zone signals a fresh start of a bullish period.
LDO’s RSI currently stands at 41, which is below 50, indicating the strength is still lacking (weak purchasing power), though not yet in the oversold region. This suggests that the market is waiting for signals. A significant catalyst for the upcoming breakout momentum is rising institutional interest in staking offerings, especially targeting the Lido market.
On Wednesday, October 22, 2025, global investment management company VanEck filed an S-1 registration application to the US SEC, seeking approval to launch a Lido staked ETH ETF in the market. The product aims to provide investors with a compliant exposure to the tokenized staking derivative staked ETH via Lido DAO, a new development showing growing institutional interest in staking products.
The latest data from DeFiLlama indicates that Lido DAO remains the biggest liquid staking protocol, controlling a $34.008 billion TVL, followed by Binance Staked ETH (with $13.946 billion TVL), Jito Liquid Staking (with $2.776 billion), and others.
