Lido DAO Price Analysis: The Rise and Fall of LDO Tokens

Analyzing LDO’s Price Plunge

Oh, the drama! Just when you thought your Lido DAO (LDO) tokens were sitting pretty, the market pulled a fast one. On July 16, LDO plummeted to a distressing low of $1.04, down from $1.32 just a day earlier. That’s over a 20% decline, folks! Not exactly holiday spending levels.

The Overbought Trap

First, let’s unpack what happened. The catalyst for this sudden dive was the overbought status noted by the daily Relative Strength Index (RSI), which hit a dizzying high above 70 on July 15. A high RSI suggests that the price is ripe for a correction—a classic case of “what goes up must come down.”

Technical Indicators Do Their Thing

But that’s not all! The 100-day exponential moving average (EMA), which can be thought of as a stubborn friend who keeps you in check, acted as a barrier right around $1.30. This EMA was crucial in curbing LDO’s meteoric rise after it rallied an impressive 150% over two weeks. It’s like that friend saying, “Maybe don’t buy that $1,500 handbag just yet.”

Comparison with Past Corrections

If this sounds familiar, it should. This price action evokes memories of LDO’s fate back in April 2022 when RSI went over 70 for the first time—followed by a catastrophic drop of over 90% to a record low of $0.39 by mid-June. Repeat after me: history tends to rhyme.

Current Predictions and Targets

What’s next for LDO? An interim target seems to hover around the 50-day EMA (that’s the red wave for those keeping score) at approximately $0.90. That’s another 20% drop from current prices. And if that EMA doesn’t hold, brace yourself; we could be looking at a nosedive to around $0.75, not too far from that Fibonacci retracement line.