- Lido DAO showed strong bearish signals, and another 38.3% plunge was likely.
- The price was at a key support that has only been tested twice in just over two years — a last stand for bulls?
Lido DAO [LDO] has breached yet another support level. Since falling below the 3-month range in February, LDO has shed 43% in just over two weeks.
It has fallen below the $1 psychological level and was headed below the $0.88 support as well, which marked the low from September 2024.
Before September, the last time LDO was trading near $0.9 was in November 2022. Following the FTX implosion, the token fell to a low of $0.872.
As things stand, LDO could fall well below the $0.88 level if the current momentum persists.
What are the next targets for Lido DAO?
Source: LDO/USDT on TradingView
Usually, Fibonacci retracement and extension levels plotted based on significant swing points offer a good view of where asset prices can go next.
The current price drop was likely not at an end, meaning a swing point might not have formed. Hence, the November rally was used to plot these levels.
The price stalled for a couple of days at the 78.6% retracement level. Over the past two weeks, more selling pressure meant the 100% level has been taken out. The next target was the 23.6% level at $0.545.
If Lido DAO prices dropped that deep, it would make new multi-year lows. The $0.545 level lined up roughly with the $0.46 and $0.5 support levels that LDO bulls defended in June 2022.
Investors must be cautious. The risk is high, but so is the reward. Buying LDO at these levels went against the trend and technical indicators.
The market structure was firmly bearish, and the RSI was in oversold territory. This showed significant bearish momentum.
Moreover, the OBV made new lows alongside the price, signifying heavy sell pressure. The downtrend was not guaranteed to halt at $0.88 just because it has been a significant support level over the past two years.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
