The cryptocurrency market has started to get active again after a low-volume week. Most digital assets are trading in a consolidation range. In this context, according to crypto analyst Vinicius Barbosa, 2 overbought altcoins are giving sell signals.
While the market is gaining strong momentum, some projects are overbought!
Bitcoin surpassed $46,000 with a strong move. Despite the overall consolidation, some altcoin projects have gained strong momentum. This led to an overbought situation. If these projects encounter difficulties or the trend changes, this could lead to a sell-off in the next few days.
Notably, the total crypto market cap has gained approximately $160 billion since January 23. Thus, proving the recent rise. This represents an increase of around 11% across the cryptocurrency market at the time of writing.
The first altcoin in overbought status: Sui Network (SUI)
Notably, CoinGlass’s weekly Relative Strength Index (RSI) heatmap shows Sui Network (SUI) heating up. SUI token currently has the highest weekly RSI in the market. Additionally, it creates a relevant sell signal at these prices. At the time of this writing, Sui was trading at $1.51, up 3.16% in seven days. However, it has an overbought RSI value of 79.64. It also shows weakness on all other time frames except the daily RSI. This short-term weakness is a sign that the trend could reverse at any time for Sui Network.
Injective (INJ) also gave a sell signal!
Another potentially overbought altcoin is Injective (INJ). The token has a weekly RSI of 72.25. Additionally, it was trading at $32.82 at the time of writing, up 1.44%. Like SUI, Injective also signals a trend reversal with lower timeframe RSIs. Interestingly, other cryptocurrencies have higher RSI scores on the seven-day time frame. However, INJ has the highest divergence between its weekly position and short-term indicators. However, all other tokens are below the market average.
Understanding this extreme strength indicator is vital for traders looking for sell signals. On the other hand, having an overbought RSI does not guarantee a price decline or trend reversal. The cryptocurrency market is highly volatile. Additionally, projects often respond aggressively to news and related events.
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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