Over 230 billion dollars evaporated in the cryptocurrency market in 24 hours. Thus, the crypto market witnessed a rapid crash. Despite this, some assets are still overbought on the daily Relative Strength Index (RSI). Crypto analyst Vinicius Barbosa says 2 altcoins are giving a sell signal.
These 2 cryptocurrencies are giving a sell signal!
The Relative Strength Index is a strong indicator of the current state of the market. In other words, it acts as a momentum thermometer. Currently, the average daily RSI of all cryptocurrencies has fallen to 44.25. So most of them fall on the border between ‘neutral’ and ‘weak’. This is a significant change from last week’s average above 60 RSI, which indicated a ‘strong’ market. CoinGlass heat map provides both data.
However, some cryptocurrencies remained in the ‘strong’ zone despite the 24-hour negative price movement. Notably, two of these tokens currently remain in the ‘overbought’ zone above the 70 RSI. That’s why they give an important sell signal.
Sell signal for overbought TraderJoe (JOE)
TraderJoe (JOE) is the leading decentralized exchange from Avalanche (AVAX). Its native token, JOE, is still overbought on the daily time frame. JOE’s 24-hour RSI is currently at 74.83, well above the market average. Interestingly, the cryptocurrency is showing signs of strength on the weekly chart. Currently, the token is trading at $1.05, a decline of 5.83%.
TraderJoe’s 7-day RSI of 60.61 may be enough to invalidate this sell signal if it maintains short-term durability. However, JOE is mostly traded within the Avalanche ecosystem. It is possible that this could cause significant lags in price performance during general crashes.
The second cryptocurrency giving a sell signal: Space ID (ID)
Another seemingly overbought cryptocurrency is Space ID (ID) with a Relative Strength Index of 73.63 days. Notably, the 24-hour price action is even stronger than JOE’s. Additionally, the cryptocurrency lost 3.7% in spot value to $1.55. Space ID is a protocol designed to create a name service network through domain name exchange in Web3. It is a competitor to the popular Ethereum Name Service (ENS), which also runs on Ethereum (ETH).
However, these two cryptocurrencies are likely to surprise investors. In other words, it is possible for them to outperform the market by maintaining their strong momentum despite the sell signal they give. Because having an overbought RSI does not guarantee that prices will fall. Therefore, cryptocurrency investors need to consider different factors and technical indicators when making financial decisions.
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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