The cryptocurrency market is currently experiencing a surge of momentum and many projects are showing “overbought” signals according to technical analysis indicators. However, this upward trend presents an interesting opportunity. While most altcoins are rising, a few are undervalued, indicating potential for further growth. This week these “laggards” could be hidden gems for crypto investors. Here are the details…
Altcoin giving a buy signal: Litecoin
According to expert Vinicius Barbosa, the few remaining downtrends in this bull market may indicate fundamental weaknesses. Investors need to be careful when evaluating these projects. A bull market encourages the emergence of new narratives and trends. Technically, the Relative Strength Index (RSI) can be a valuable tool for identifying strong momentum. Typically, readings above 60 and below 70 indicate a healthy rise.
The expert analyzed data from CoinGlass to learn more about potential buying signals. Two cryptocurrencies have emerged with strong buy signals that are well positioned to navigate the ongoing bull market. First, Litecoin (LTC) is showing impressive momentum with a weekly RSI of 60.7, remaining comfortably below the historical average of 64.9. This signals a potential acceleration in the uptrend of LTC, which is currently trading at $88.47.
Importantly, Litecoin is a prominent payment coin in the crypto market, potentially benefiting from the growing interest in crypto payments. Additionally, LTC experienced a slight decline of 2.55% last week. This means a neutral or weaker RSI on the lower time frames, and some traders interpret it as a buy signal.
The second coin on the list was EGLD
Similar to altcoin Litecoin, MultiversX (EGLD) finds itself in an interesting position. EGLD has one of the lowest RSIs among projects considered “strong”. This essentially translates into a higher risk-to-reward ratio, offering greater growth potential within the current uptrend.
EGLD saw a 5.29% pullback this week and is currently trading at $67.83. Despite this, the MultiversX native token maintains a strong weekly RSI of 61.32. MultiversX, in particular, stands out as the only L1 Blockchain with fully implemented and battle-tested sharding technology.
Do you need to watch RSI for profit?
Despite the attractive buying signals for these cryptocurrencies, investors still need to be careful. It is vital to monitor the Relative Strength Index (RSI) closely. This will help identify future opportunities to take profits before an inevitable overbought oversold signal arises.
As a result, although the cryptocurrency market is generally in an upward trend, some projects offer more attractive opportunities. Litecoin (LTC) and MultiversX (EGLD) are exhibiting strong buy signals, offering investors a chance to benefit from the ongoing market rally. But responsible crypto investing requires constant vigilance. Monitoring the RSI and staying informed about market trends will help investors make sound decisions and navigate the ever-evolving crypto landscape.
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