RSI over 70 means Ethereum might be overbought, signaling a potential price drop. MACD crossovers indicate trend changes. Together, they help traders assess whether it's time to enter or exit a trade based on price momentum and market conditions.
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Price oracles are services that provide external data, such as asset prices, to decentralized applications (dApps) and smart contracts, enabling them to make decisions based on real-world information. In DeFi, oracles are crucial for functions like lending, borrowing, and decentralized exchanges, where the price of collateral or traded assets needs to be accurate and up-to-date. By sourcing data from multiple exchanges and aggregating it, oracles help mitigate manipulation risks and provide reliability. However, they also present a vulnerability: if an oracle is compromised, it could lead to incorrect pricing, causing financial loss or exploits within DeFi protocols. Therefore, ensuring oracle security and reliability is vital for the integrity of DeFi ecosystems.
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The RSI is a momentum oscillator that helps traders identify potential reversal points by measuring the speed and change of price movements. An RSI value above 70 suggests that the cryptocurrency is overbought and might be due for a price pullback, while an RSI below 30 signals that it is oversold, often indicating a potential rebound. In the volatile crypto market, the RSI helps traders pinpoint extreme conditions and take advantage of potential corrections or rallies, especially when used alongside other technical indicators for confirmation.
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