Cryptocurrencies have made huge gains in the last seven days. During this period, many of them reached overbought status. However, there are laggards in the crypto market who are rebounding from weak price action and gaining momentum. It is possible for investors to benefit from technical analysis buy signals. It is one of the indicators that shows that the trend is reversing, especially for cryptocurrencies that are gaining momentum. That’s why crypto analyst Vinicius Barbosa looked for insight by turning to CoinGlass’ Relative Strength Index (RSI) heat map. From here, he identified two altcoins with solid fundamentals gaining momentum on the weekly time frame.
Monero recovering Strong buy signal has arrived for (XMR)
First, Monero (XMR) is recovering from a major pullback that dropped as low as $100 in early February. On this occasion, Binance announced the delisting of the leading privacy coin, surprising the market that was selling XMR in panic. This event gave Monero an oversold weekly RSI value. Thus, the solid project started to recover with a 7-day increase of 16%. Notably, XMR reached a neutral 42.52 RSI value. Additionally, the altcoin is trading at $147.98 at the time of writing.
Therefore, a full recovery appears to be on the horizon, with the suggestion of a trend reversal that investors may view this week as a strong buying signal for a medium to long-term bullish forecast. Given the right conditions, it is possible for Monero to reach a 10-fold market value increase in 2024. Meanwhile, short-term investors will likely wait for better entry points. So they are likely to stay away from buying on a green week.
Second altcoin: THORChain (RUNE)
THORChain (RUNE) is another cryptocurrency with solid fundamentals and a significant recovery. However, it still lags behind the market. Interestingly, RUNE is currently above the neutral-50-week RSI. It’s also posting gains just shy of 4% in that time frame. Trading at $5.56, THORChain’s daily RSI also shows increasing momentum, which investors could interpret as a buy signal.
The project is a cross-chain and decentralized exchange protocol built to facilitate exchanges between different Blockchains. In this context, it is possible that a general bull market will greatly increase the demand for its solution and RUNE.
On the other hand, if the momentum of these two recovering altcoins cannot catch up, the buy signal is likely to be invalid. If cryptocurrencies enter a correction phase, the volatility and fast-moving characteristics of the market could backfire.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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