Lido Dao price shifts away from $2.20 with less upside potential in sight.
LDO nears the oversold barrier in RSI again.
Only one element stands in the way of LDO imploding.
Lido Dao (LDO) is in the red and sending out distress signals as a new low was printed early Tuesday. Support is nearby, although it is questionable based on the current pattern whether bulls will be there to support it. If the important 200-day Simple Moving Average (SMA) gives way, it will take many Hail Marys to avoid a systemic meltdown in the price action that could add up to the price being cut in half.
Lido Dao price playing with fire as a meltdown is near
Lido Dao price action on Tuesday morning can be compared with the Armageddon or doomsday pictures you often see in comic sitcoms where persons on the street shout: "All is lost! All is lost!" It must feel like that for bulls at the moment as suddenly a lot of them find themselves stuck in a negative position with the risk that that negative number could start to double or even triple. LDO is flirting with the break of the 200-day SMA, opening up a twoâtiered area where losses might vary from 25% to 50%.
LDO has one small circuit breaker at $1.85 that could still do the trick if the 200-day SMA does not hold. Once that $1.85 treads water, expect to see another leg lower of 25% toward $1.43. Conveniently, the new pivots for May almost falls in line with that barrier. In case that does not hold, a big gap opens up that will LDO below $1 with $0.87 as the best guess for support going back to the autumn of 2022.
A bounce at either first barrier would be enough to send LDO back above $2 and would make sense with the RSI being oversold again. There is little incentive for bears to get involved here if no breakout has occurred just yet to the downside. On the topside, that $2.20 will prove to be a firm test, and the 55-day SMA is coming in near $2.32 just above.Â
