• Dolomite has launched its Governance Forum, empowering the community to shape the project’s decentralized future.
• DOLO trades near $0.339, testing $0.35 resistance amid rising derivatives activity.
• RSI and MACD confirm bullish momentum, but leveraged positions raise volatility risks.

Dolomite is opening its Governance Forum on Discord. This is a massive shift towards community decision-making. The launch coincides with increasing trade activity in its token DOLO.

A Community-Driven Protocol

Dolomite recently took its first step toward a decentralized, community-based protocol with the Governance Forum. Since the token launch, the team has been developing the form in which the governance will be performed.

With the platform active, members of the community can now influence the future of the ecosystem, and token holders can participate. Dolomite explains that the forum introduces increased transparency and lets individuals get involved in the process. According to the team, giving power to a central group shifts it to the community.

Technical Levels Suggest Key Resistance Areas

According to Fibonacci, $0.3011 will act as a great support, and $0.3503 will be an immediate resistance. The token is currently at approximately $0.339 and holding firm as it tests the upper range.

The Volume-Weighted Average Price (VWAP) gives another signal of a bullish outlook. DOLO remains over $0.3339, where there is consistent buying pressure.

Maintaining the price above VWAP implies that traders believe the upward direction is going to continue. When the token surpasses the resistance marked at $0.35 easily, technicals suggest more upward swing will follow.

Fib. and VAWP. Source: TradingView

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Momentum Indicators Support Bullish Outlook

RSI at 66.28 is nearly at overbought levels, but not more than 70. This implies that the demand is good. However, traders must monitor for cooling if overextended buying continues.

The chart shows that the MACD is switching to a bullish crossover. The MACD line is over the signal line. Also, the buying momentum is on the rise as indicated in the green histogram bars. Such a setup indicates that buyers are regaining control once more and helps support the uptrend.

RSI and MACD. Source: TradingView

Derivatives Boost Market Activity

Derivatives markets have played a significant role in turning up the activity around Dolomite. Coinglass reported a 314% increase in the volume of DOLO derivatives to $1.17 billion. This will indicate that there are additional traders who are keen on making bets regarding fluctuations in the token’s price.

Open interest increased by 65.86% to $74.61 million. Increased open interest suggests that larger sums are being deposited in any given futures contracts, and this may influence the market direction.

But this is also an indication that the big swings that may be brought about by a shift in sentiment are the result of traders using huge leverage. Traders are attempting to balance making profits with volatility risks.

Source: Coinglass

Surge In Activity Introduces Risks

Price fluctuations can be increased due to excessive leverage and increasing derivatives exposure. The RSI is almost in the range of an overbought condition and indicates potential pullbacks when buyers are exhausted. The combination of good governance, market engagement, and sound technicals is what keeps Dolomite strong in decentralized finance.

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