RSI and MACD are key technical indicators for Ethereum price forecasting. An RSI above 70 suggests overbought conditions, while below 30 indicates oversold. MACD crossovers help identify momentum shifts. A bullish crossover (MACD line above signal line) can suggest an upward trend, while a bearish crossover signals potential declines.
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Impermanent loss occurs when the value of assets in a liquidity pool changes relative to when they were initially deposited. This loss is "impermanent" because it only becomes realized when the assets are withdrawn. For example, if a liquidity provider adds equal amounts of two cryptocurrencies to a pool, and one token increases significantly in value, they may end up with a smaller portion of the more valuable token when they withdraw. This reduces the overall value of their holdings compared to just holding the tokens outside the pool. While liquidity providers earn transaction fees, impermanent loss is a key risk that needs to be managed, especially in highly volatile markets.
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To assess the credibility of a cryptocurrency project’s team, start by researching the team’s background. Look for members with experience in blockchain, cryptography, and relevant industries. Check their LinkedIn profiles, previous projects, and professional accomplishments. A strong, reputable team often has a visible presence in the crypto space and is transparent about their identities. Be cautious of projects with anonymous teams or lack of verifiable experience. Community feedback and reviews can also provide insights into how trustworthy the team is.
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