The market sentiment for Dolomite (DOLO) is mixed, with a short-term bearish bias. Despite the enthusiasm for its recent airdrop and its integration with projects like World Liberty Financial (WLFI), the price has experienced a strong correction following its listing on Binance, generating caution among investors.
Technical Analysis
The price of DOLO shows a medium-term upward trend that has been interrupted by a 25% drop in 24 hours, reaching a low of $0.18735. This downward movement has been accompanied by a high volume of sales.
Support and Resistance: The key support is at $0.187, while the immediate resistance is in the range of $0.22-$0.25.
Indicators: The MACD (Moving Average Convergence/Divergence) remains negative, indicating bearish momentum. The current price is below the exponential moving averages (EMA), reinforcing the short-term downward trend.
Trading Recommendation: It is suggested to wait for the price to hold above the support of $0.187. Traders may consider long positions if the price bounces, targeting $0.25, or short positions if the support breaks, targeting $0.15.
Fundamental Analysis
Dolomite is a DeFi protocol operating on the Arbitrum and Berachain networks. Its main feature is capital efficiency, allowing users to use assets as collateral while retaining their utility. The total value locked (TVL) of the protocol, at $212.78 million, exceeds its market capitalization of $52.27 million, suggesting it is undervalued compared to its competitors.
Partnerships: The project is backed by Coinbase Ventures and has a key alliance with WLFI, positioning it as the main place for stablecoins like USD1.
Recent milestones: Recent milestones include the listing on Binance and the expansion to networks like Botanix, a Bitcoin L2.
Risks: The main concerns are market volatility and competition. However, its solid architecture positions it for long-term growth, with price projections for 2025 ranging between $0.22 and $0.44.
Conclusion
Despite the current volatility and mixed sentiment, the fundamentals of Dolomite are strong. Traders with a long-term investment horizon may see this correction as a buying opportunity, but caution is advised, and waiting for technical confirmation is recommended to minimize risks.
