Lido DAO's LDO Token Plummets 43% in Two Weeks, Approaching $0.88 Support

Lido DAO, a prominent decentralized autonomous organization in the cryptocurrency space, is currently experiencing significant bearish pressure. The token, ldo, has recently breached several key support levels, causing concern among investors about its future trajectory. Since February, LDO has seen a substantial decline, losing 43% of its value in just over two weeks. This downward trend has pushed the token below the $1 psychological level and is now approaching the $0.88 support level, which marked the low from September 2024.

The $0.88 support level is particularly crucial as it has only been tested twice in the past two years. This level represents a critical juncture for bulls, who are hoping to defend it against further declines. However, the current momentum suggests that LDO could fall well below this level if the bearish trend persists. Historically, the last time LDO was trading near $0.9 was in November 2022, following the FTX implosion, which saw the token drop to a low of $0.872.

Technical indicators and market structure point to a firmly bearish outlook for LDO. The Relative Strength Index (RSI) is in oversold territory, indicating significant bearish momentum. Additionally, the On-Balance Volume (OBV) has made new lows alongside the price, signifying heavy sell pressure. These indicators suggest that the downtrend is not guaranteed to halt at $0.88, despite its historical significance as a support level.

Investors are faced with a challenging decision: whether to buy LDO at these levels, going against the trend and technical indicators, or to wait for reversal signals. The potential for higher returns exists, but the risk is equally high. The next targets for LDO, based on Fibonacci retracement and extension levels, are the 23.6% level at $0.545. If LDO prices drop to this level, it would make new multi-year lows, aligning roughly with the $0.46 and $0.5 support levels that LDO bulls defended in June 2022.

The current price drop is 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.