The recent downturn has led to significant sales, pushing many cryptocurrencies into the oversold zone. Oversold conditions typically indicate that selling pressure has become excessive and point to a potential recovery. According to CoinGlass, the overall Relative Strength Index (RSI) is supporting this transition with a 24-hour average RSI of 32.85. This near-oversold condition indicates that the market may be stabilizing and preparing for a potential recovery. In this context, crypto analyst Aneena Alex identified 2 altcoins as strong buying candidates for this week.
First ranked altcoin: Jito (JTO)
The RSI for Jito (JTO) on multiple time frames supports a buy decision. The 24-hour RSI is at 29.79, close to the critical oversold threshold of 30. An RSI below 30 generally indicates that an asset is oversold and may be poised for a price recovery. This level indicates that JTO is experiencing intense selling pressure that may be close to exhaustion. Additionally, the 12-hour RSI is 28.86, further confirming the oversold status.
Although shorter timeframes such as the 1-hour and 4-hour RSIs are above 30, these values indicate that some short-term buying interest is building. This indicates that the asset is starting to recover from the oversold situation, although it has not fully stabilized. The altcoin price also increased by 3.18% in the last 24 hours, signaling a recovery. The combination of oversold RSI levels on longer time frames and the recent price increase suggest that JTO is an attractive buy. Investors can expect the price to correct upwards as market sentiment improves. Additionally, this can provide a potential entry point for profitable transactions.
In second place is Decentraland (MANA)
Decentraland’s (MANA) RSI levels on various time frames also indicate strong buy signals. The 24-hour RSI is at 29 and is in the oversold zone. This RSI level indicates that MANA has been significantly oversold and will likely experience a price reversal. The 12-hour RSI is even lower at 25.02. It also further supports the oversold situation.
Although shorter timeframes such as the 1-hour and 4-hour RSIs are above 30, these indicate some short-term buying is occurring and the potential for a continued recovery. The 7% increase in the altcoin price in the last 24 hours strengthens this view. When an asset’s RSI is below 30 on longer time frames but shows signs of buying interest on shorter time frames, it indicates that the downtrend is losing momentum and points to a potential recovery. The oversold condition on long time frames, combined with positive short-term price action, suggests MANA is well positioned to benefit from the broader market recovery.
Investment warning for cryptocurrencies
Both cryptocurrencies are exhibiting oversold RSI levels on longer time frames and signs of recovery on shorter time frames, indicating a strong potential for upside corrections. However, it is important to note that the RSI should not be used as a sole indicator for making investment decisions. Investors and traders should also consider other technical indicators, market conditions, and fundamental analysis when evaluating potential trades.
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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