Market Overview for Lido DAO/Tether (LDOUSDT) on 2025-10-07

• LDOUSDT declines sharply from $1.26 to $1.185, marking a 6.5% 24-hour drop.
• Key support levels at 1.2185 and 1.1954 tested, with bearish momentum increasing.
• High volume observed in the late morning ET, coinciding with the breakdown.
• RSI and MACD confirm bearish momentum, with RSI nearing oversold territory.
• Volatility surged during the selloff, as shown by Bollinger Bands expansion.

LDOUSDT opened at $1.2633 on 2025-10-06 at 12:00 ET, reaching a high of $1.2717 and a low of $1.1828 before closing at $1.1880 on 2025-10-07 at 12:00 ET. Total volume for the 24-hour window was 14,174,641.37, with a notional turnover of $17,410,818.04.

The 24-hour chart highlights a strong bearish reversal, with price declining sharply after forming a bearish engulfing pattern and a long lower shadow during the early morning hours. The breakdown below the 1.2261 level confirmed a structural bearish bias, with key support now at 1.2185 and 1.1954. A bearish divergence is visible in the RSI, which dropped below 30, signaling potential oversold conditions and a possible short-term rebound.

The 15-minute chart reveals a significant increase in volatility, with Bollinger Bands widening as the price accelerated downward during the 14:30–15:45 ET window. The 20-period moving average crossed below the 50-period line, reinforcing the bearish trend. MACD lines show a negative crossover, with the histogram shrinking as the selloff continued, indicating momentum is running out. The 50-period moving average now sits at 1.2368, a key dynamic resistance that may act as a ceiling for the next 24 hours.

The price has found near-term support at the 61.8% Fibonacci retracement level of $1.1954, with the 38.2% level at $1.2212 now in play as resistance. A retest of this level in the next 48 hours could trigger a short-term rebound if bullish volume and order flow confirm. However, if the breakdown below $1.1954 occurs, the next target becomes $1.1828 and potentially $1.1715. Investors should remain cautious as bearish sentiment is strong, with limited signs of a near-term reversal.

Backtest Hypothesis
A potential backtesting strategy could involve identifying the bearish engulfing pattern near $1.2633 and entering a short position with a stop above $1.2717 (the 24-hour high). A target could be set at the 1.1954 support level. Using a 1:2 risk-reward ratio, this setup would have captured a 6.8% move over a high-volatility 6-hour window. A more refined version would combine this with RSI divergence and MACD momentum confirmation. Given the sharp price action and clear breakdown, this pattern may offer a high-probability setup for short-term bearish traders.