The Bitcoin and altcoin market has pulled back in the last few days, losing more than $250 billion in total value since March 14. This move created potentially good entry points for cryptocurrencies with strong long-term momentum and served as a buy signal. Notably, the market remains strong despite the recent significant price correction, which is natural and expected in bull rallies. Analysts collected the following data from CoinGlass on March 17.
Analysts point to a buy signal next week
According to analyst Vinicius Barbosa, it is necessary to pay attention to two altcoins in the coming week. Specifically, when we look at the Weekly Relative Strength Index (RSI), we see an average of 60.37 in the “Strong” zone, according to the analyst. Therefore, it is an important technical indicator of how well most cryptocurrencies should perform over larger time frames. In search of a buy signal this week, the analyst looked at neutral RSI cryptocurrencies on the daily time frame.
The first of these was Cardano (ADA). ADA is a solid layer-1 blockchain project that has experienced a relevant correction in the last few days. Notably, ADA has lost 7.63% of its value in the last 24 hours, dropping its daily RSI below neutral-50. However, Cardano still remains strong above the average weekly RSI among all cryptocurrencies. In this context, ADA could potentially be a good buy at $0.67 if the market continues to grow and Cardano fundamentals remain positive.
Altcoin Polkadot also shows its strength
Secondly, Polkadot (DOT) is considered one of the first layer-0 blockchains to be in a similar situation to Cardano on RSI. Native token DOT has seen a price correction over the past few days, moving its daily RSI to the edge of neutrality at 51.95. DOT lost 6.4% in the last 24 hours but is poised to gain strength in the short term given favorable conditions. Polkadot is still showing a strong weekly Relative Strength Index of 67.23. This shows that it will continue in the long term.
Interestingly, there are more cryptocurrencies that are in a similar situation to these two. Savvy investors should look for solid fundamentals, a strong long-term perspective, and relevant short-term corrections to find good buy signals in the market. However, cryptocurrencies are highly volatile and unpredictable assets and there is no guarantee of positive investment returns. It is very important to remain cautious to avoid significant losses.
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