The total crypto market cap reached an 18-month high at $1.65 trillion. Meanwhile, some cryptocurrencies are showing overbought signals. According to crypto expert Vinicius Barbosa, it is best to stay away from these 3 altcoin trades next week.
These 3 altcoins pose high risk
The current bull market gave its first signs in January 2023. Coming to the end of the year, we witnessed a 115% increase in total market value. Previously, TradingView’s total capitalization index lost its current value 18 months ago, during the May 2022 market.
We looked at CoinGlass’ Relative Strength Index (RSI) heat map for overbought altcoin projects. Cryptocurrency investors should avoid trading these projects next week as part of a sound risk management strategy. Especially Oasis Network, BakeryToken and Injective pose extra risks for investors with current data.
Oasis Network (ROSE) is at the top of the list
Oasis Network native token ROSE was trading at $0.1181 at the time of writing. The altcoin gained over 14% during the week. However, the RSI is showing overbought status on both the 4-hour, 24-hour and 1-week time frames. Respectively, the index stands at 82.71, 77.31 and 95.56 for each time frame.
Second ranked altcoin: BakeryToken (BAKE)
Meanwhile, BAKE, a decentralized exchange token, is showing a lower overbought status than ROSE. However, this is still enough to stay away from trading BakeryToken next week. Essentially, BAKE has RSI values of 73.38, 76.41 and 82.19 on the 4-hour, 24-hour and 1-week time frames respectively. The altcoin was trading at $0.4282 at the time of writing. Meanwhile, BAKE is up over 74% for the week.
Injective (INJ) comes last on the list.
At the time of writing, INJ was trading at $38.71, up slightly on the day. It was exhibiting an interesting RSI divergence on its daily chart. Notably, INJ’s weekly Relative Strength Index is at 97.33 points, the highest among other cryptocurrencies. However, the 4-hour RSI is at 52.3, lower than the market average of 57.56 points. Meanwhile, the altcoin has seen a weekly gain of nearly 25%. It has also made a notable advance of over 155% on its monthly chart.
This short-term neutral RSI, in the midst of one of the highest medium-term overbought situations, suggests a major pullback is around the corner for INJ. Therefore, it would be wise for investors to stay away from Injective trading until a new trend is consolidated.
Generally, cryptocurrencies in an overextended uptrend are likely to pull back for the usual market correction. However, it is possible for even overbought assets to continue rising in price. This increases the risk of trading such tokens.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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