LDO price falls 6% as Lido Finance members push for dual governance model

Lido DAO (LDO) price is on a load-shedding exercise after the July 13 rally fueled by Ripple's win against the US Securities and Exchange Commission (SEC). The slump comes as the Lido Finance community deliberates a proposal intended to introduce a new tokenomics structure.

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Lido Finances deliberates new tokenomics structure

Lido DAO (LDO) price is down 6%, wiping out the last bit of the ground covered when the overflows of Ripple's partial victory over the SEC inspired capital inflows into altcoins. Riding on the hype, an influx of buying pressure among LDO holders sent Lido price up almost 35% to record an intra-day high of $2.52 on July 14. Nevertheless, it has been a gains-shedding exercise since then as profit-taking ensued.

Meanwhile, the Lido Finance ecosystem is pondering a proposal that could see LDO holders that stake on the Ethereum blockchain have unilateral power to either stop or approve official actions around the network's dual governance model.

In an interview with Decrypt, Lido DAO business development contributor Marin Tvrdić, revealed that community members want to have a voice in the network's governance. The push makes sense considering LDO is a governance token giving holders a voice during instances when a proposal is on the table. Citing Tvrdić in the interview:

…as an LDO holder, you can vote, but if the proposal is not good enough, and stakers decide it is not good enough, they can shut it down.

As LDO holders push for influence in the protocol's decision-making, Lido price shows signs of a continued downtrend with bears fastening their grip.

Lido DAO price forecast as momentum fades

Lido DAO price is $1.90 at the time of writing, sitting on the $1.87 support level that has held forte since June 21. LDO's overall outlook is bearish, with both momentum indicators heading south. The Relative Strength Index (RSI) and the Awesome Oscillators (AO) histograms are point down, interpreted as falling momentum.

Increased selling pressure could see LDO price flip the $1.87 support into resistance, paving the way for a prolonged downtrend that could see the governance token repost the mid-June lows around $1.64. Such a move would denote a 15% slump from current levels.

LDO/USDT 1-Day Chart

Conversely, a resurgence by bulls could pivot the $1.87 support, sending the LDO price north. A breach of the 50-day Exponential Moving Average (EMA) at $1.97 could clear the path higher for the token to confront the 100-day EMA at $2.02. A decisive daily candlestick close above this hurdle will solidify the uptrend, but conservative traders should not relax until Lido DAO breaks above the 200-day EMA at $2.23.

In a highly bullish case, Lido DAO price could tag the range high at $2.63, constituting a 40% climb from the current level.