RSI and MACD are effective for predicting Ethereum’s price moves. RSI over 70 signals overbought conditions, and MACD crossovers often indicate trend changes. Together, they offer stronger signals for traders to spot entry or exit points.
- 0 replies
- 0 recasts
- 0 reactions
Token burns involve permanently removing a certain number of tokens from circulation, typically by sending them to an irretrievable address. This reduces the total supply, which, in theory, increases scarcity and could drive up demand if the project’s fundamentals are strong. Regular token burns can signal the project’s commitment to controlling inflation and maintaining value. However, if burns are used excessively without real demand or utility behind the token, they might not lead to sustained price increases. Investors often view token burns as a positive long-term strategy, but their effectiveness depends on the broader market and project’s adoption.
- 0 replies
- 0 recasts
- 0 reactions
Market depth analysis looks at the order book to identify the concentration of buy and sell orders. When there’s a large buy wall at a specific price, it indicates strong support, and if the price approaches this level, it may act as a springboard for a breakout. Similarly, a significant sell wall at resistance levels can create a barrier. If these walls are broken through with strong volume, it signals a potential breakout. By monitoring market depth, traders can identify key levels of support and resistance, and predict where price movements may accelerate.
- 0 replies
- 0 recasts
- 0 reactions