Bearish Pressure on Lido DAO: Can $0.88 Remain Resilient or Face Further Declines?
Lido DAO Sees Significant Price Decline
Lido DAO (LDO) has recently exhibited concerning bearish trends in its price movements, with predictions estimating a potential further drop of around 38.3%. This decline occurs as LDO approaches a crucial support level that has only been tested twice in the last two years — raising questions about whether this is a final defense point for those holding the coin.
Since slipping below its three-month price range in February, LDO has experienced a steep decline of 43% over a short span of just two weeks. The price has dipped below the psychologically important threshold of $1 and now heads toward a critical support zone at $0.88. This $0.88 level served as the low during September 2024. Interestingly, prior to the unfortunate events of September, LDO had not been this low since November 2022, when the token’s value plummeted to $0.872 following the FTX exchange crisis.
Current trends suggest that if the prevailing market pressure continues, LDO could soon drop below the $0.88 support level, marking a significant shift for potential investors and traders alike.
Future Price Predictions for Lido DAO
Analysts often utilize Fibonacci retracement and extension levels, which are calculated based on notable price fluctuations, to determine where an asset’s price might head next. The recent sharp decline in LDO’s price does not appear to have reached its conclusion yet, implying the absence of a stable swing point. Thus, the rally that occurred in November has been instrumental in plotting out these levels effectively.
Over the past few days, LDO has lingered at the 78.6% retracement level, but sustained selling pressure has led prices below the 100% threshold. As it stands, the next significant target for Lido DAO could be the 23.6% retracement level, estimated at $0.545. Should LDO prices indeed drop to this level, it would represent new multi-year lows. This $0.545 mark is closely aligned with earlier support levels at approximately $0.46 and $0.5 that were previously defended by LDO holders back in June 2022.
Nonetheless, prospective investors should proceed with caution. While buying LDO at these low prices may appear enticing, it does pose a substantial risk. The current circumstances defy the general trend, highlighting warnings from technical indicators. The overall market structure remains bearish, and the Relative Strength Index (RSI) indicates that LDO is in oversold conditions, further emphasizing the prevailing bearish momentum.
Additionally, the On-Balance Volume (OBV) reflects new lows alongside the declining price, illustrating strong selling pressure that persists in the market. Hence, the belief that the downtrend will reverse at the $0.88 level — despite being a significant point of support in the previous two years — is not guaranteed.
In summary, Lido DAO’s current market scenario is challenging, and potential buyers should evaluate their position carefully. The risks are high, and while the possibility of reward exists, one should tread lightly given the bearish sentiment dominating LDO’s price movements.
