As the cryptocurrency market turned red on February 20, Bitcoin revisited the bottom of its current range. Meanwhile, some cryptocurrencies are still showing overbought status, indicating a sell signal. Crypto analyst Vinicius Barbosa looks at 2 altcoins giving sell signals.
The momentum of the leading cryptocurrency Bitcoin has weakened
Bitcoin has been trading in this range since February 14 after breaking the $50,000 psychological resistance. cryptokoin.comAs you follow from , on February 20, BTC reached a new peak of $ 52,985. However, it fell to the bottom of the range immediately thereafter.
Notably, this move weakened other cryptocurrencies that were in an uptrend but could lead to a trend reversal.
Jasmy Coin (JASMY) is overbought
In particular, the overbought JasmyCoin (JASMY) attracts attention on CoinGlass’s weekly Relative Strength Index (RSI) heat map. JASMY token currently has the highest daily RSI in the market. This creates a relevant sell signal at prices. At the time of this writing, JasmyCoin was trading up 106% in seven days. However, if the weekly RSI is 77.49, it indicates overbought.
Moreover, it shows an overbought situation on the daily and 4-hour time frames at 88.05 and 81.47 respectively. A general pullback could trigger a major correction for JASMY after this overextended bull run.
Frontier (FRONT) also gave a sell signal
Another overbought cryptocurrency is Frontier (FRONT). The token has a weekly RSI of 79.39. FRONT is trading at $0.53 at the time of writing, up 7.63% on a weekly basis. This is the highest 7-day Relative Strength Index. Interestingly, there is a notable difference between FRONT’s weekly situation and short-term indicators. Except for the daily 71.1 RSI, the lower time frames are losing momentum. This indicates that the trend is reversing.
Navigating these trend indicators is crucial for traders looking for buy and sell signals. However, an overbought RSI does not guarantee a price collapse or trend reversal. The cryptocurrency market is highly volatile. Therefore, projects often respond aggressively to news and related events. Therefore, follow leading indicators such as Bitcoin, stock market or other financial products.
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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