Crypto analyst Vinicius Barbosa detects oversold cryptocurrencies with trend reversal indicators. The analyst notes that this is a valuable buy signal for crypto investors using technical analysis. In this context, he shares 2 altcoin projects where indicators give a buy signal.
There are 2 altcoins in oversold status
Essentially, an oversold buy signal appears for an asset that shows extreme weakness with the Relative Strength Index (RSI) on the higher time frames. At the same time, a divergence in the lower time frames indicates a trend reversal. This is because the market moves in variable cycles. Therefore, any move will inevitably face a correction in the other direction. CoinGlass’s RSI heatmap shows that there are only two altcoins that are currently oversold.
Jupiter (JUP): Oversold on 24-hour RSI
First, Jupiter (JUP) experienced a consecutive sell-off. Thus, the 24-hour RSI dropped its value to the oversold zone at 29.92 points. However, the three lower time frames indicate strong momentum that could lead to a reversal. JUP is currently trading at $0.477. This altcoin in particular stood out as a cryptocurrency that should be avoided from trading on February 2 in anticipation of a sale due to its large airdrop.
Ark (ARK): Oversold on weekly RSI
Ark (ARK) is rising as the only oversold cryptocurrency on the weekly time frame. Interestingly, we see dashed lines on the chart showing cryptocurrencies that quickly changed their RSI from oversold to strong. Notably, ARK has a 7-day RSI of 24.88. The buy signal appears when the 24-hour RSI moves towards neutral at 43 points. The altcoin traded at $0.848, losing 10.95% in value last week.
However, having an oversold RSI condition does not guarantee a price recovery. The cryptocurrency market is highly volatile. Therefore, it is possible for everything to change in the blink of an eye. In this context, projects that experience problems, are stopped, or experience major declines may also exhibit oversold status and continue in a downward trend. Therefore, investors need to be careful and understand what they are buying.
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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