A dormant whale moved 6.2 million LDO into Binance at a steep loss, intensifying fears of renewed sell-side pressure returning to the market.
Moreover, the deposit arrived during a period when Lido DAO [LDO] was continuing to lose structural support, which increased the influence of such a large transfer.
However, Taker Buy CVD still favored buyers, indicating consistent absorption across the past 90 days despite heavier distribution pressure.
That created an unusual setup: aggressive offloading from a major holder while buying activity resisted downward momentum.
Liquidity continued shifting between both sides as each attempted to control direction. That left LDO vulnerable if buyer absorption weakened at the next demand zone.
Downtrend intensifies as LDO breaks key support
LDO traded inside a steep descending regression channel, and the repeated lower highs confirmed seller control. The slope of the channel signaled accelerating downside momentum, reducing the odds of a clean recovery.
On top of that, the break below the $0.7326 support removed an important structure level that previously held during earlier declines.
Losing that level shifted focus toward the $0.4560 demand zone, where buyers might attempt a reaction.
RSI printed 30.28, while its signal line sat at 36.93, reflecting weakness with no clear reversal signals. Every upward attempt lost momentum quickly, proving sellers dominated until buyers reclaimed levels above the broken support.
Source: TradingView
Short sellers grow more aggressive as positioning tilts
Bearish momentum strengthened as short accounts increased to 57.61%, creating a clear imbalance that favored sellers.
Moreover, this shift showed growing conviction among traders who expect continued downside rather than a recovery. The positioning also aligned with LDO’s broader weakness, which reinforces seller confidence.
By contrast, long accounts held 42.39%, showing buyers hesitated to add exposure while conditions remained fragile.
That imbalance increased pressure on bulls, who needed both structural improvement and reduced short interest to shift momentum. Market positioning continued leaning toward extended downside unless a strong catalyst interrupted the trend.
Source: CoinGlass
Open Interest drop reveals fading speculative appetite
Open Interest falling 4.16% to $60.07 million at press time reflected shrinking speculative participation as traders reduce exposure during LDO’s weakening phase.
Moreover, the drop supported the broader risk-off tone, since traders favored caution over aggressive positioning.
At the same time, lower Open Interest limited short-term volatility potential, because fewer open positions reduced the chance of sharp price swings. The combination of falling Open Interest and rising short dominance strengthened the bearish backdrop across derivatives markets.
Additionally, this contraction signals a market still searching for stability, as traders avoid building meaningful new positions until LDO reaches clearer demand zones or forms stronger reversal signals.
Source: CoinGlass
Conclusively, LDO continued facing strong downside pressure as the descending regression trend, the bearish Long/Short Ratio, and declining Open Interest all aligned toward further losses.
Despite buyer absorption appearing through Taker Buy CVD, the broader setup lacks the strength needed to disrupt dominant selling momentum.
The aforementioned conditions supported a move toward the $0.4560 demand zone, which stands as the next logical target before any rebound attempt.
If buyers defend that level with confidence, stabilization becomes possible, but the market must first complete this downside move that every major signal currently confirms.
Final Thoughts
- LDO lost its $0.7326 support, leaving the chart pointed toward the $0.4560 demand zone, where buyers may react again.
- The broader setup points toward further weakness unless LDO finds a strong reaction from the next demand zone.
Source: https://ambcrypto.com/lido-dao-slips-assessing-if-ldo-could-fall-to-0-4560/
