LDO, the governance token for the Lido DAO, jumped 9.85% in a single daily candle. But traders are already calling the move a potential bull trap. Technical indicators are flashing warning signs that the rally may not last.
Why the spike looks like a trap
A bull trap happens when a price breakout lures buyers in, then reverses sharply. In LDO's case, the Relative Strength Index (RSI) has moved into overbought territory. That typically means the asset is due for a pullback. At the same time, the MACD histogram sits at zero — a neutral reading that offers no confirmation of momentum. Without a strong MACD signal, the spike looks fragile.
Overhead resistance at the 200-day moving average
The 200-day simple moving average (SMA) is acting as overhead resistance. That's a key level. If LDO can't break above it, the recent gains could evaporate quickly. The SMA 200 has historically capped rallies, and this time is no different. The token is bumping against it right now.
What traders expect next
Analysts are watching for a pullback to $0.33 before any serious attempt at $0.40. That retest would shake out weak hands and reset the RSI. If support at $0.33 holds, the path to $0.40 becomes clearer. If it doesn't, the bull trap is confirmed and LDO could slide further.
The next few sessions will tell. LDO needs to either break the 200-day MA with volume or drop back to $0.33. Either way, the current spike isn't being taken at face value.
