Dog Owner Warns Dogecoin Enthusiasts: What's the Next Move?
In a recent X post, Mishaboar, a respected Dogecoin community member, has issued a warning to DOGE holders, urging them to avoid "Earn" programs offering yield on deposited Dogecoin. The warning comes as Dogecoin continues to trade at $0.17, up 0.19% in the last 24 hours.
Mishaboar highlights the danger of giving up custody of a decentralized asset like Dogecoin, citing several significant risks associated with these programs. Firstly, these programs often involve higher risks compared to holding Dogecoin directly. The yield offered may not compensate for potential losses due to platform failures or market volatility.
Secondly, by depositing Dogecoin into these programs, users lose custody of their assets. Instead of holding actual Dogecoin, they receive IOUs (promises or claims to the coins), which can lead to a loss of control over their assets.
Thirdly, these platforms are typically centralized, meaning users have to trust these platforms with their coins. Centralized platforms can be vulnerable to regulatory issues, hacking, or bankruptcy, which could result in the loss of deposited assets.
Lastly, Mishaboar believes that only insiders or those closely involved with these platforms tend to benefit from "Earn" programs while regular users are exposed to significant risks for minimal gains.
Mishaboar emphasizes that Dogecoin is already a highly volatile asset and does not need additional yield to be appealing. His caution is aimed at protecting DOGE holders from potential financial losses by encouraging them to avoid these risky programs.
Meanwhile, crypto analyst Ali suggests monitoring three critical resistance levels for Dogecoin: $0.18, $0.21, and $0.36. Firm support for Dogecoin has established near $0.166-$0.167. At the moment, DOGE is stuck beneath resistance but is showing early signs of bullish reaccumulation at critical support. The daily RSI for DOGE is near 50, indicating potential consolidation.
Retail interest in DOGE is declining, but whale accumulation of DOGE has increased by 112% in the past week. Analysts predict that Dogecoin is forming a multi-year cup-and-handle pattern, which could potentially push its price as high as $0.75. However, Mishaboar's warning serves as a reminder to exercise caution in the volatile world of cryptocurrencies.
It is important to note that this warning is not an endorsement of the views of U.Today. As always, it is essential to conduct thorough research before making any investment decisions.
- Mishaboar advises DOGE holders to be cautious about "Earn" programs, as they can expose investors to higher risks compared to owning Dogecoin directly.
- By depositing Dogecoin into these programs, users risk losing control of their assets and relying on IOUs instead of actual coins.
- Centralized platforms, which are common for these programs, can face regulatory issues, hacking, or bankruptcy, potentially leading to asset loss.
- Crypto analyst Ali suggests monitoring critical resistance levels for Dogecoin, and Mishaboar's warning serves as a reminder to exercise caution in the volatile crypto market, despite potential price predictions.
