Lido DAO [LDO] Has Breached Yet Another Support Level. Where Will It Fall To Next?

LDO has shed 43% since falling below the 3-month range in February. It has fallen below the $1 psychological level and was headed below the $0.88 support

Lido Finance's governance token, LDO, has breached yet another support level. Since sliding below the 3-month range in February, LDO has lost 43% in just over two weeks.

It has dropped below the $1 psychological barrier and was on course to hit the $0.88 support, which marked the low from September 2024.

Before September, the last time LDO traded close to $0.9 was in November 2022. After the FTX collapse, the token reached a low of $0.872.

As it stands, LDO could slide to levels well below $0.88 if the current momentum continues.

What are the next price targets for Lido DAO (LDO)?

Credit: LDO/USDT on TradingView

Typically, Fibonacci retracement and extension levels plotted from significant swing highs and lows offer a good indication of where asset prices could travel to next.

The current price drop was likely not at an end, which meant a swing high or low might not have formed yet. Hence, the November rally was used to plot these levels.

The price action stalled for a couple of days at the 78.6% retracement level. Over the past two weeks, more selling pressure saw the 100% level get taken out. The next target was the 23.6% Fibonacci extension level at $0.545.

If Lido DAO prices dropped that far, it would be forming new multi-year lows. The $0.545 level also coincided roughly with the $0.46 and $0.5 support levels that LDO bulls defended in June 2022.

Investors are advised to proceed with caution. The risk was high, but so was the potential reward. Buying LDO at these levels would be going against the trend and technical indicators.

The market structure was still firmly bearish, and the Relative Strength Index (RSI) moved into oversold territory. This indicated that there was still significant bearish momentum.

Furthermore, the On Balance Volume (OBV) was making new lows alongside the price, highlighting the strong sell pressure. The downtrend was not guaranteed to stop at $0.88 just because it was a crucial support level over the past two years.