@ingridted
The Fear & Greed Index is a useful sentiment gauge, combining volatility, social media, volume, and dominance data. It often aligns with short-term momentum, signaling overbought or oversold conditions. However, it can be misleading if interpreted in isolation, as extreme fear sometimes precedes rebounds and extreme greed often occurs before corrections. Long-term investors should use it alongside on-chain data, macro indicators, and liquidity metrics. Its accuracy is higher for identifying sentiment extremes rather than steady market trends.
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