RSI above 70 indicates Ethereum might be overbought, signaling potential for a price pullback. A MACD crossover could confirm a shift in momentum. Together, they offer a clearer picture of market trends, helping traders spot possible entry or exit points based on current momentum.
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Governance tokens allow holders to participate in the decision-making process of blockchain projects. By owning these tokens, users can vote on key proposals such as protocol upgrades, changes to fee structures, or how project funds are allocated. This system aims to decentralize control by giving the community a direct role in the project's evolution, rather than relying solely on the developers or a centralized authority. However, the voting power is often proportional to the number of tokens a user holds, which can lead to centralization if a few large holders dominate decisions. Despite this, governance tokens are a step toward more decentralized and community-driven decision-making in blockchain ecosystems.
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DeFi token prices are heavily influenced by broader market conditions and sentiment. In bullish markets, investor optimism drives up DeFi token prices as more capital flows into decentralized finance platforms for higher yields and decentralized financial services. Conversely, in bearish markets, DeFi tokens often face price declines as liquidity and risk appetite shrink. Additionally, DeFi tokens are closely tied to Ethereumβs price because most are built on its blockchain. So, when Ethereum experiences significant price changes, DeFi tokens usually follow suit, reflecting broader market trends and investor sentiment.
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