Market Overview: Lido DAO/Tether (LDOUSDT)

Summary
• Price declined sharply early, breaking below key support at 0.635 and forming bearish engulfing patterns.
• Momentum weakened as RSI approached oversold territory and volume surged during the selloff.
• Volatility expanded with a 5.6% range, and price traded near the 61.8% Fibonacci level of a recent 5-minute retracement.
• A sharp rebound emerged near 0.6295, showing buying interest but failed to close above critical 0.634 resistance.

Lido DAO/Tether (LDOUSDT) opened at 0.6435 on 2026-01-04 12:00 ET, reached a high of 0.6521, a low of 0.6241, and closed at 0.6485 on 2026-01-05 12:00 ET. Total volume was 6.36 million, and notional turnover amounted to ~$410,632.

Structure & Formations

Price action revealed bearish dominance early in the session, with a breakdown below the key support level at 0.635 and the formation of bearish engulfing patterns. Later in the session, a bullish reversal formed around 0.6295, but it lacked sufficient momentum to reclaim 0.634, a prior intraday high.

Moving Averages

The 5-minute 20SMA and 50SMA crossed in a bearish alignment early in the session, supporting the downward move. Daily MAs remained mixed, with the 50DMA crossing above the 200DMA, suggesting some medium-term strength.

MACD & RSI

MACD turned bearish with a negative crossover and weak histogram momentum. RSI approached oversold territory near 30 by the late hours of the session but failed to produce a convincing bounce, suggesting weak short-term resilience.

Bollinger Bands

Volatility expanded significantly, with the bands widening as price dropped to the lower band near 0.6241. The rebound saw price return toward the middle band, indicating potential consolidation.

Volume & Turnover

Volume spiked during the early selloff, particularly between 01:00–02:00 ET, supporting the bearish move. Notional turnover followed suit, confirming the price action. A divergence appeared later when volume dipped during a rebound, indicating possible exhaustion.

Fibonacci Retracements

A 5-minute retracement from the high of 0.6521 to the low of 0.6241 showed price finding support near the 61.8% level at 0.6316. However, a test of the 38.2% level at 0.6374 failed, suggesting limited near-term upside.

The market appears to be consolidating near a critical inflection point, with mixed signals from momentum and volume. A break above 0.634 could invite short-term buyers, but a retest of 0.6295 may expose further downside risk if bearish pressure persists. Investors should remain cautious about liquidity gaps and potential divergence in the next 24 hours.