LDO, the token behind Lido DAO, has slipped below the $0.37 support level as selling pressure mounts across the market. New data shows 61% of retail traders are now short on LDO, while negative funding rates signal that long positions are losing money. The breakdown puts the token on track for a potential drop to $0.32 within the next three weeks, according to technical analysis.
Why traders are betting against LDO
The shift in sentiment is clear. With nearly two out of every three retail positions bearish, the crowd has turned against LDO. Negative funding rates — the cost of holding a long position in perpetual futures — have turned negative, meaning longs are paying shorts to stay in the game. That kind of imbalance tends to accelerate downward moves as weak hands get squeezed out. Traders aren't waiting for a rebound; they're piling into shorts, and the data suggests they're being rewarded for it so far.
Technical picture points to $0.32
The $0.37 level had been a floor for LDO in recent weeks, but that floor just gave way. Breaking a support that held for multiple sessions usually opens the door to the next technical target, and analysts are eyeing $0.32 as the next stop. That's roughly 13% below current prices if the slide continues at the same pace. The three-week timeline aligns with the pattern seen after similar breakdowns in other altcoins — a steady bleed rather than a sudden crash, at least for now. No other support levels stand out until the low $0.30s, so the path of least resistance remains lower.
For anyone still holding LDO, the immediate question is whether $0.32 will hold or if the sell-off has further to go. The funding rate is a double-edged sword: when it's deeply negative, it can sometimes trigger a short squeeze if buyers suddenly step in. But with retail so heavily short and no major catalyst on the horizon, the burden is on buyers to prove they can defend the next level. No official statements from Lido DAO or related teams have been released, and the token's price action is being driven purely by market mechanics right now. The next few trading sessions will show whether $0.32 becomes the new floor — or just another level the bears blow through.
