Using the RSI and MACD together provides a comprehensive view of price action. A high RSI suggests an overbought market, while a MACD crossover confirms trend shifts, helping traders identify optimal entry or exit points.
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Governance tokens in DeFi allow holders to participate in important decisions about the project’s development, such as protocol upgrades, fee structures, or treasury management. The more tokens a user holds, the greater their voting power. This decentralizes control, empowering the community rather than a central authority. However, if a small group controls a large portion of tokens, it can lead to centralization, undermining the project's decentralized nature. These tokens often provide an incentive for users to remain engaged and aligned with the project's long-term goals.
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Blockchain transparency provides real-time access to transaction data, wallet activity, and token circulation, helping investors evaluate the project's health. By analyzing on-chain metrics like the distribution of tokens, active user participation, and development progress, investors can assess whether a project is genuinely gaining adoption or merely driven by speculation. Transparent audit trails also ensure that the project's funds are being used effectively, building trust in its long-term sustainability and reducing the risk of fraudulent or mismanaged projects.
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