The cryptocurrency market is in a bull rally and most altcoins are breaking out of medium-term downtrends on their charts. However, some cryptocurrencies are still weekly oversold due to large losses in the past. Crypto expert Vinicius Barbosa considers that if these projects have strong fundamentals that will fuel demand, there may be a buying opportunity for the next few days.
Bitcoin’s price movement boosted the crypto world’s morale!
cryptokoin.comAs you can see from , Bitcoin made a nice rally reaching over 52 thousand dollars. This price action of BTC has proven strong short-term momentum for the crypto world. The leading cryptocurrency reached its highest level in recent years at $ 52,522. It now faces price resistance from 2021. At the time of writing, BTC was trading at $52,260. This move could push oversold cryptocurrencies into an uptrend going forward.
Buy signal for oversold 0x Protocol (ZRX)
In particular, CoinGlass’s weekly Relative Strength Index (RSI) heatmap shows an oversold 0x Protocol (ZRX). The decentralized exchange infrastructure protocol is trading at $0.339, up 6.26% in seven days as of press time. Interestingly, the weekly RSI remains oversold at 29.61. Lower time frames position ZRX in rising momentum. Essentially, with the daily and hourly RSI at 56.49 and 62.4, it is possible that short-term price action could trigger a forward retracement from the weekly zone.
Second token: Kyber Network Crystal v2 (KNC)
Another potentially oversold cryptocurrency is Kyber Network Crystal v2 (KNC). The token has a weekly RSI of 27.51. Additionally, it was trading at $0.648 at the time of writing. This indicates an increase of 6.96%. Like ZRX, KNC also signals a trend reversal with lower timeframe RSIs. Interestingly, the average weekly RSI for the crypto market is 57.88. This increases the relevance of projects above this line.
However, having an oversold RSI condition does not guarantee prices to rise. Understanding this extreme weakness indicator is vital for traders looking to buy signals. The cryptocurrency market is highly volatile. Moreover, everything can change in the blink of an eye. In this context, projects that have problems, are stopped, or experience major declines may also exhibit oversold status and continue in a downward trend. Therefore, investors need to be cautious and understand what they are buying.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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