We can observe that the NVT Golden Cross has just turned positive, but this does not mean the signal is positive.
For now, there are no significant risks as the value remains low, but it’s crucial to monitor this metric to ensure that conditions do not worsen.
If the NVT Golden Cross value reaches 2.2, it could suggest that the market cap is highly outpacing transaction volume, potentially signaling a reversion to the mean.
In such a case, this could be interpreted as a signal to consider opening short positions, while also taking the overall chart and trend into account.
This scenario could lead to the beginning of a ranging pattern, which might create a favorable environment for altcoins to perform.
Written by Darkfost
