Lido DAO's governance token LDO is rallying toward the $0.50 resistance level, pushed by a $20 million buyback proposal that has traders watching closely. The token is currently trading at $0.43, and while technical indicators remain mixed, smart money flows suggest a 70% probability the price will test that key threshold.
The $20 million buyback proposal
The buyback plan – still subject to a community vote – would see Lido DAO use protocol revenue to repurchase and potentially burn LDO tokens. That kind of supply reduction tends to boost prices, and the proposal has already injected fresh bullish sentiment into the market. Investors are betting that if the vote passes, the buyback could tighten supply and push LDO above the $0.50 mark.
The proposal comes at a time when LDO has been range-bound for weeks. A successful buyback would mark a shift in the DAO's capital allocation strategy, signaling confidence in the token's long-term value.
Smart money positioning and probabilities
Large holders and institutional wallets – often called smart money – are positioning for that test. Data from on-chain and exchange flow metrics indicate a 70% likelihood that LDO will touch $0.50 in the near term. That probability has risen sharply since the buyback was announced.
Still, a test doesn't guarantee a breakout. If the token hits $0.50 and fails to hold, a quick sell-off toward $0.38 could follow. The smart money positioning suggests they're betting on a move, but they're also hedging – options activity and futures open interest show both bullish and protective puts being added.
The next few days will tell the story. The community vote on the buyback hasn't been scheduled yet, but the proposal itself is already moving the market. Whether LDO can finally clear $0.50 depends on how that vote goes – and whether the buying pressure holds once the token gets there.
