The cryptocurrency market has shown significant growth in recent days, reaching new records. Despite this optimistic sentiment, experts advise investors to remain cautious and stay alert to market developments.
Crypto Market Overheating
At the start of the month, the crypto market capitalization was at $2.307 trillion. By November 12, it reached a new all-time high of $2.953 trillion. However, this growth comes with early signs of overheating. Bitcoin's RSI stands at 83.88, indicating possible price correction.
Three Key Indicators of a Possible Crash
The meme coin market, including Dogecoin and Shiba Inu, shows rapid growth. Dogecoin increased by 107.6%, while Shiba Inu surged by 37.2%. Such assets are historically considered unstable.
Futures funding rates have also reached record highs, potentially leading to mass sell-offs if investors close positions. The fear and greed index at 88 indicates extreme optimism, which has previously led to market corrections.
Indicators: Caution and Outlook
Experts recommend investors to heed the signs of market overheating. In times of extreme greed and elevated rates, it is crucial to maintain sound risk management practices.
Despite new heights reached by the crypto market, experts advise investors to be cautious and evaluate risks, relying on current market indicators.
