DODO coin has recently caught the attention of many investors and traders. The coin witnessed a significant surge of over 33% in the last 24 hours and is currently trading at a price of $0.13. But what’s driving this sudden spike?
The primary catalyst behind this surge is Binance’s decision to open futures for DODO. It’s worth noting that the last time Binance took a similar action was with YGG, which saw its value triple even after the initial news-driven pump. This has led some to speculate that entering a long position on DODO at $0.15 might be a strategic move for traders.
Source: CoinStats
However, it’s essential to approach this with caution. YGG experienced a significant decline after its surge. If DODO follows a similar trajectory, we might see a downturn in its value in the near future. Adding to the speculation, a top trader on TradingView suggests that if DODO were to emulate YGG’s path, it could potentially reach a price target of $0.52 before any potential fall.
In a recent tweet, the renowned analyst Kripto Analiz expressed ambivalent feelings regarding DODO’s future. He mentioned that Binance is set to delist DODO in three days and pointed out the coin’s exceptionally high trading volume.
Additionally, he raised two bear alarms, suggesting potential downward pressure on the coin’s price. Kripto Analiz also hinted at the possibility of a short squeeze and noted the high negative funding. His sentiments seem mixed; while he’s uncertain about the coin’s direction, he contemplates switching to a long position if the stop loss (SL) is triggered. Despite the uncertainty, he maintains a modest position in the market, indicating a cautious approach.
Understanding DODO Coin
For those unfamiliar with DODO coin, it serves as the native cryptocurrency for the DODO platform. This platform operates as a decentralized exchange (DEX) built on both the Ethereum and Binance Smart Chain networks. What sets DODO apart from many other DEXs is its unique proactive market maker algorithm.
The DODO coin, recognized as an ERC-20 token on the Ethereum network, has multiple use cases within the DODO platform. It plays a pivotal role in platform governance, staking, and participation in both Crowdpooling and Initial DEX Offerings (IDOs). Additionally, those who stake or mine on the platform are rewarded with DODO. Holding onto DODO also entitles users to trading fee discounts and the ability to mint vDODO. This minted token offers members added benefits and dividends derived from trading fees.
One of DODO’s primary objectives is to enhance the accessibility of decentralized finance (DeFi) liquidity. It aims to offer superior price stability and liquidity compared to other automated market maker DEXs.
