Analyst Crypto Patel said on August 6 that Lido DAO’s LDO token could recover more than 1,700% after falling nearly 94% from its previous all-time high.
The market watcher believes LDO is sitting in a high-risk accumulation zone but warned that the token’s bearish structure remains intact until it reclaims major resistance levels.
LDO Tests Multi-Year Support After Heavy Sell-Off
Crypto Patel’s analysis on X placed LDO inside a long-term demand area after its decline from the previous cycle peak near $4.
“Everyone Forgot About $LDO After A -94% Crash,” he wrote. “The Long-Term Recovery Potential From Here Could Exceed 1,700%.”
The token is currently trading around $0.29, close to the analyst’s proposed accumulation zone between $0.275 and $0.24.
He said that LDO is still inside a multi-year descending channel, with price action still showing lower highs and lower lows. A weekly close below $0.23 would invalidate the current setup, while a move above $0.47 would be needed to signal a possible trend change.
The token’s recent weakness has been linked to concerns around Ethereum’s proposed EIP-8361. Developer Jerome de Tychey said on August 5 that the proposal aims to prevent staking from rising without limits.
Analyst Ted Pillows suggested that LDO’s decline was likely connected to fears that lower ETH fstaking rewards could reduce demand for liquid staking tokens such as stETH.
“$LDO is selling off because of concerns around Ethereum’s EIP-8361 proposal,” Pillows wrote on X.
He added that the proposal is still an early draft and has a long process before any possible implementation.
Lido has also had to deal with changing conditions across Ethereum staking. As CryptoPotato reported last month, the platform started moving around $16 billion worth of staked ETH onto larger post-Pectra validators, with the idea being that Lido’s curated node operators stop running thousands of identical 32 ETH validators and collapse them into fewer, bigger ones.
Case for a Longer-Term Bottom
LDO is currently about 25% above the $0.235 low it hit on June 25, a level that replaced its previous floor and now marks the bottom of its five-year trading history since launching in 2021 at an all-time high near $7.30.
In the last seven days, it has fallen close to 18% and is down roughly 27% over the past two weeks, according to CoinGecko. Furthermore, trading volume sits near $50 million, down 43% from the previous day.
The bullish case hinges on LDO reclaiming $0.47 on a weekly closing basis, a level that flipped from support to resistance after a breakdown in 2024. From there, Crypto Patel maps out targets at $1.50, $2.50, and eventually back toward the token’s old cycle high near $4, the move that would produce the kind of gain he’s describing. He points to Lido’s continued lead in Ethereum liquid staking and the shrinking token supply left to unlock as reasons the setup could work if ETH climbs back above $3,000.
The post Analyst Predicts 1,700% LDO Rally From Long-Term Support appeared first on CryptoPotato.
Source: https://cryptopotato.com/analyst-predicts-1700-ldo-rally-from-long-term-support/
