The Binance Fear and Greed chart, with a value of 76, indicates a market in a period of extreme greed. This can be dangerous, as whales (large investors) often take advantage of these spikes to manipulate prices and generate volatility, putting smaller investors at risk. It is important to remember that although the moment seems favorable for quick profits, it is essential to remain cautious and avoid making impulsive decisions based on market euphoria. Prudence and strategic planning are key to navigating this scenario.

"This is not investment advice. Please be sure to do your own research and consider your financial objectives before making any decisions."

We should not become emotionally attached to a financial asset
as we do to a personal relationship, because the investment market is highly unpredictable and volatile.

Here are some reasons why it is important to avoid this "marriage" with currency:

Emotional attachments can impair objectivity

When you become emotionally attached to a currency or financial asset, you may start making impulsive decisions, guided by feelings of love or loyalty, rather than rationally evaluating market data. This can cause you to miss out on taking profits at opportune times or even continue to hold an asset that is falling, hoping for a recovery that may never come.

The market is unpredictable
Diversification is safer

The concept of diversification is fundamental to risk management in any investment portfolio. When you "marry" a currency, you put all your eggs in one basket

The boom and bust cycle

Cryptocurrencies, like any other asset, go through boom and bust cycles. If you "marry" a currency and don't know when to sell, you could end up in the middle of a bear cycle, watching your investment melt away before you can take any action.

Summary:
Investing should be a rational decision, based on data and strategy. "Marrying" an asset is like clinging to the idea that it will always be perfect or will rise forever, which is an unrealistic view in the financial world. The best thing to do is to always pay attention to the market, have a well-defined strategy and be flexible enough to adjust your investments when necessary, without letting emotions or blind loyalties interfere with your decisions.

The RSI (Relative Strength Index) is a technical indicator widely used in the financial market to assess the strength or weakness of an asset, such as stocks or cryptocurrencies, based on their recent prices. It was developed by J. Welles Wilder and measures the speed and change of price movements. The RSI ranges from 0 to 100 and is generally used to identify overbought or oversold conditions of an asset.

The RSI formula takes into account the average price changes in periods of highs and lows. The default value for calculation is made with 14 periods (usually days or candles, depending on the chart), but this value can be adjusted according to the trader's strategy. When the RSI is above 70, it indicates that the asset may be overbought, which suggests a possible reversal or price correction. On the other hand, when the RSI is below 30, it indicates an oversold condition, suggesting that the price may be about to recover.

The RSI is useful for identifying market entry and exit points, and while it is not foolproof, it is an effective tool when combined with other indicators and technical analysis.

Taking profits in the cryptocurrency market

is an important strategy for those looking to secure gains and minimize risks. When an investor decides to "take" a 20% profit, it means that they have sold part or all of the digital asset after an appreciation of that value in relation to the purchase price. This strategy is common in volatile markets such as crypto, where prices can rise quickly but also fall unpredictably.

By taking 20% ​​profits, the investor takes advantage of a significant appreciation without waiting for a possible price correction. This allows them to capture the gain more safely, avoiding the risks of holding the investment for too long. However, it is important to evaluate the right time to sell, considering market conditions and financial objectives, since the cryptocurrency market can be highly volatile and offer opportunities for even greater gains.

"This text does not constitute investment advice. Each investor has their own objectives and risk tolerance. It is essential that you do your own analysis and carefully evaluate your decisions before investing."

#BecomeCreator

How do MACD variations work?

The Moving Average Convergence Divergence (MACD) indicator is versatile and can be viewed in different ways to suit each trader’s analysis preferences.

There are three main variations of the MACD that traders can use to analyze assets, each offering a unique perspective on price movement and momentum.

MACD Histogram

The histogram is particularly useful for identifying when momentum is starting to change before it is reflected in MACD line crossovers, providing an early warning of potential trend reversals.

This setup is particularly useful for traders who want a comprehensive analysis, allowing them to simultaneously interpret crossover signals and momentum changes visualized by the histogram.

Traders can then make more informed trading decisions based on both trend direction and strength.

MACD Line

This is the original and most basic version of the MACD and involves only the MACD line and the signal line.

This version is useful for identifying crossovers between the MACD line and the signal line, which can signal market entry and exit points, as well as divergences and trend line breakouts.

Interpretation of the Lines

Convergence and Divergence

Convergence (when the lines move closer together) or divergence (when the lines move apart) between the MACD line and the signal line can also indicate imminent changes in market direction.

Crossovers: The most common signals given by the MACD occur when the MACD line crosses the signal line.

Bullish signal: Crossovers from below suggest an uptrend, possibly a good time to look for buys.

Bearish signal: Crossovers from above indicate a downtrend, which can be a signal to look for sells or avoid new buys.

$BNB Price Analysis

On Friday, BNB was trading slightly above $578.7, a point that tests the trendline breakout. If the cryptocurrency's price encounters resistance near $580, Chhetri's forecast points to a possible 8% drop, with the price returning to the low recorded on October 3, at $534.3.

He points out that a close below this level could pave the way for a new 12% pullback, taking BNB to the next support, around $471.3.

Technical indicators corroborate Chhetri's bearish view. The daily Moving Average Convergence Divergence (MACD) chart, for example, showed a bearish crossover on Wednesday, issuing a sell signal. Furthermore, according to him, the red histogram bars, appearing below the neutral line, indicate that the bearish momentum is gaining strength.

Another indicator that signals selling pressure is the Relative Strength Index (RSI), currently at 32, below its neutral level of 50.
“The RSI below the equilibrium point reinforces the bearish scenario, evidencing a loss of buying power in the market,” says Chhetri.
Despite the bearish scenario, the analyst highlights that, if the price of BNB manages to recover and close above the daily resistance level of US$ 612.5, it could set a new high point for a short-term uptrend.

“If this happens, the next target would be the June 10 high, at US$ 674.8,” predicts Chhetri. Finally, the analyst highlights a possibility of reversal if BNB regains strength above the critical resistance level.

Solana Price Analysis

Solana was able to sustain the retest of the $164 breakout level on November 1, indicating that bulls have the upper hand.

SOL/USDT daily chart.
Buyers will try to push the price above the short-term resistance at $183. If they succeed, the SOL/USDT pair could rally to $189. Sellers will try to stop the move higher at $189, but if the bulls prevail , the pair could reach US$210.
On the other hand, if the price declines and breaks below $164, it will suggest that the bulls are rushing for the exit. The pair may fall to the 50-day simple moving average ($152) and subsequently to the uptrend line. $SOL $USDC

XRP continues trading below the 20-day exponential moving average(US$ 0.53)

but the bears failed to pull the price up to the support of US$ 0.46. This suggests that sales are declining at lower levels.

Buyers will again try to push the price above the moving averages. If they succeed, it would suggest the start of a relief rally towards the upper resistance of US$ 0.64. Bears are expected to vigorously defend the US$ 0.64 level.

Alternatively, if the XRP/USDT pair drops sharply again from the moving averages, it will suggest that the bears remain in control. This will increase the likelihood of a drop to the support zone between US$ 0.46 and US$ 0.41.

21Shares Files for XRP ETF Approval with SEC

Asset manager 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch an XRP exchange-traded fund (ETF). In a filing dated Nov. 1, the company filed an S-1 form indicating its interest in listing the “Core XRP Trust” on the Cboe BZX Exchange.

While the fund does not offer direct exposure to XRP, it does allow investors to indirectly access the cryptocurrency market.

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Should the SEC approve the application, Coinbase Custody Trust Company will act as the asset’s custodian, handling the secure storage of funds allocated to XRP.

Prior to 21Shares, other companies, such as Bitwise, have filed similar proposals for XRP ETFs, although the SEC has yet to respond to those requests. The Commission has already approved spot Bitcoin and Ethereum ETFs in 2024. However, it has yet to decide on ETFs for other cryptocurrencies such as XRP and Solana.$XRP

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