Dolomite (DOLO) has decreased by 17.43% over the past 24 hours, lagging behind the broader cryptocurrency market (+1.47%).
Key factors:
Consequences of a security incident - $165,000 stolen from DOLO in an address poisoning attack (August 15) has brought concerns back to the forefront.
Post-listing volatility - The distribution of DOLO from Binance TR (August 29) caused profit-taking after the initial hype.
Deleveraging - High liquidations ($392k in 24 hours on August 10) and declining futures funding rates pressured the price.
In-depth Analysis
1. Security concerns
Overview: The $165,000 theft of DOLO via address poisoning (ScamSniffer) on August 15 has been brought back into discussions, reigniting concerns over wallet security and protocol vulnerabilities.
What this means: Although the attack wasn't new, the renewed interest is likely to increase caution among coin holders, especially with DOLO's 24-hour trading volume down 9% to $141 million. Security risks often lead to short-term sell-offs as investors reassess their exposure to higher-risk assets.
What to look for: Protocol updates regarding security audits or mitigation measures to restore confidence.
2. Profit-taking after listing
Overview: DOLO's listing from Binance TR on August 27 included a token distribution to investors, which ended on August 29. The price peaked at $0.27 on August 10 but has since corrected by 22%.
What this means: Recipients of token distributions often sell the tokens post-distribution to secure profits, creating downward pressure. The circulating supply increased to 441 million DOLO (44% of the max supply), adding dilution risks.
What to look for: Inflow/outflow exchange flows across platforms like Topone, which offers leverage up to 1000x on DOLO, increasing volatility.
3. Technical Analysis
Overview: DOLO has dropped below critical support levels:
7-day moving average: $0.252 (current price: $0.211)
Relative Strength Index (7 days): 43.99 (neutral-bearish zone)
MACD: The indicator (-0.0025) suggests weakening momentum.
What this means: Technical traders likely exited positions as the price went below the moving averages, increasing sell-offs. The next major support at the Fibonacci level is $0.179 (78.6% retracement level).
