Lido (LDO) is showing signs of strength again after a brief pullback, with bulls holding the line at a critical support level. If momentum continues, the staking protocol’s token could be on track for a 30%+ move higher fueled by record-breaking growth in its total value locked (TVL) and Ethereum’s ongoing rally.
Price Action: From Breakout to Pullback and Now, a Potential Rebound
After bottoming at $0.63 earlier this year, LDO has been in a clear uptrend. The token recently surged ~92% from a post-breakout dip at $0.85 to hit $1.63, marking its second higher high and cementing a bullish structure on the charts.
That rally came in step with Ethereum’s nearly 9% climb, driven by strong ETF inflows, which brought ETH close to its own all-time high.
Since then, LDO has cooled off, sliding to $1.32 before bouncing back to around $1.40. Importantly, that $1.32 low left a long lower wick on the daily candle a classic sign that buyers stepped in aggressively. The rebound happened just above the key $1.29 breakout zone and the 20-day EMA ($1.22), confirming strong technical support.
Volume analysis also leans bullish: the pullback came on noticeably lower volume compared to the breakout, suggesting it was more about shaking out weak hands than signaling a trend reversal.
Upside Targets: $1.63 First, Then $1.85–$1.95
If buyers keep defending $1.29, the path is open for LDO to retest $1.63. A strong breakout above that level could set the stage for a run toward $1.85–$1.95 a move that would represent roughly 32%–39% upside from current prices.
The main caution? The RSI is showing a bearish divergence, hinting that momentum might be slowing. If bulls can’t push through $1.63 with conviction, a deeper pullback back toward $1.29 remains possible.
Fundamentals: Lido’s TVL Hits $41B All-Time High
The bullish technical setup is backed by strong fundamentals. Lido’s TVL has surged to a record $41 billion in dollar terms, according to an update from the team just two days ago. As the largest Ethereum staking protocol, Lido benefits directly from ETH’s rally offering users the ability to stake ETH without locking it directly on the network.
Potential Game-Changer: LDO Buyback Program
Looking ahead, governance discussions could add a major bullish catalyst. During the August 14 Tokenholder Update Call, cofounder Vasiliy Shapovalov floated the idea of a “triggerable” LDO buyback mechanism using stETH through a system called NEST.
The plan would allow the DAO to repurchase LDO tokens from the market reducing circulating supply and potentially supporting the price. Shapovalov said a proposal could be posted to the Lido forum in the coming days, with a framework decision targeted within the next 2–3 months.
Bottom line:
With technical support holding, record-high TVL, and a possible buyback program on the horizon, Lido’s setup is leaning bullish. If the $1.29 level continues to hold, the next few weeks could see LDO challenging $1.63 again and potentially breaking higher toward the $1.85–$1.95 zone.
