The cryptocurrency market has been going through a turbulent period lately, leaving many investors in uncertainty. Amidst this turmoil, most cryptocurrencies quickly moved from overbought positions to more neutral or even oversold positions based on their RSI values. However, some assets managed to buck the trend by making significant gains. Crypto analyst Aneena Alex detected sell signals for two tokens from CoinGlass’ data. The analyst states that overbought cryptocurrencies will eventually withdraw.
The first cryptocurrency with signals: Tellor (TRB)
Tellor (TRB) is a Blockchain-based oracle network and a strong competitor to Chainlink (LINK) in this space. TRB has exhibited an extraordinary price increase recently. The token price rose from a low of $42.73 to a high of $141.72. What’s more, he did it within a week. Thus, it recorded an increase of approximately 200% in value. This sharp rise pushed the 24-hour RSI value to 79.88. Moreover, more significantly, the four-hour RSI increased to 80.54. This pointed out the overbought scenario of the token.
Additionally, TRB experienced another significant price increase of 27% in the last 24 hours. Thus, the current price of the token has reached $142.66. In addition, it has risen well above the 30-day Exponential Moving Average (EMA) of $76.48. Despite a more moderate weekly RSI value of 60.35, short-term indicators suggest that Tellor may experience a price correction. Because traders are likely to start taking profits, expecting a pullback after such rapid gains.
Other sell signal token: Frontier (FRONT)
Frontier (FRONT), 24-hour RSI stands at 74.66. The four-hour RSI offers a similar picture, rising slightly to 72.83. The hourly RSI level at 71.82 reflects persistent buying pressure that is not even abating. It is also currently worth $1.72, leading to a 30% increase in its price in the last day.
The one-week RSI is less intense compared to normal trading conditions at 58.35. However, it still shows high momentum. It also indicates that FRONT may be approaching its peak.
Investors should be careful!
Since both TRB and FRONT have shown significant price increases in combination with high RSI values in a short period of time, cautious investors may consider this moment as the optimal moment to re-evaluate their positions and potentially take profits before a corrective phase begins. Therefore, investors need to follow market signals closely. It would also be beneficial for them to monitor broader economic indicators that have the potential to influence cryptocurrency prices.
The opinions and recommendations 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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