Bitcoin reached its highest level in recent years at $45,922 today. Following this leadership, some cryptocurrencies began to trade at higher prices. Most people wait for strong price movements to invest capital in a particular cryptocurrency. However, smart money avoids trading overly speculative assets as part of a good risk management strategy. Crypto expert Vinicius Barbosa points out meme-coins with weak fundamentals and coins that are ‘overbought’ according to the Relative Strength Index (RSI). In this regard, he warns investors about 6 high-risk altcoins.
Stay away from meme-coin trading!
Meme-coins like Dogecoin (DOGE) initially emerged as a means to have fun with digital money. Meme-coins have become popular among cryptocurrency investors after Elon Musk’s support of DOGE and the rise of Shiba Inu (SHIB). Interestingly, Pepe (PEPE) and Bonk (BONK) became meme-coins in 2023 that benefited from the greed of speculators. cryptokoin.comAs you follow from , BONK became the biggest winner of the year. But its investors may face a fate similar to that of PEPE and many of these microfinancial bubbles. It would be beneficial for conscious investors to stay away from PEPE and BONK trading in this cycle.
4 altcoins to avoid trading this week
Using CoinGlass’ heat map, we identified four altcoins with high RSIs. These are specifically Filecoin (FIL), Internet Computer Protocol (ICP), BitcoinSV (BSV) and Perpetual Protocol (PERP). The ‘overbought’ status of these projects increases the possibility of price pullbacks and large-scale liquidations. However, even an overbought asset can continue to rise in an uncertain market like crypto.
Filecoin (FIL)
First, the FIL scores are 72.28, 78.58 and 86.33 on the 4-hour, 24-hour and 1-week RSI. This all points to an overbought situation for Filecoin, which is trading at $7.77 at the time of writing, up 5.55% in 24 hours.
Internet Computer Protocol (ICP)
Meanwhile, ICP has a higher weekly RSI at 91.66. Additionally, the RSI shows similar overbought on the daily chart for the altcoin at 78.3. Internet Computer Protocol’s native token started its short-term correction with a 1.47% decline at $13.50 with a 4-hour RSI of 64.49.
BitcoinSV (BSV)
BitcoinSV is also trading at $98.33 with a 24-hour RSI of 76.03. Thus, this altcoin also joined this week’s cryptocurrencies to stay away. BSV continues to be overbought despite suffering a massive loss of 7.22% in the last 24 hours.
Perpetual Protocol (PERP)
Finally, PERP was changing hands at $1.50 at the time of writing, up 22.52%. Meanwhile, Perpetual’s token is overbought on all time frames. Therefore, it was recorded as 84.35 on the weekly RSI and 77.4 on the 4-hour and daily charts.
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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