The cryptocurrency market has started to get active again after a low-volume week. Most digital assets are trading in a consolidation range. However, some cryptocurrencies are registering oversold status due to huge losses in recent weeks. According to crypto analyst Vinicius Barbosa, this will increase the demand for these projects. In this regard, the analyst talks about a buying opportunity for 2 altcoins.
It is possible for Bitcoin’s upward move to trigger!
cryptokoin.comAs you follow from, Bitcoin saw a downward trend that lasted from January 12 to January 22. After that, it remained in a consolidation range. The leading cryptocurrency has recovered slightly from the decline by entering an 8-day consolidation range that was broken on January 7.
As of this writing, BTC is trading at $45,092, retracing its price level from three weeks ago, before a short-term downtrend. It is possible that this move could push oversold altcoin projects into a forward-looking uptrend.
The first altcoin to give a buy signal: Ripple (XRP)
CoinGlass’s weekly Relative Strength Index (RSI) heat map on February 8 shows an oversold XRP. The sixth-largest cryptocurrency by market cap is up 2.5% in 24 hours. Thus, it was trading at $0.515 at the time of writing. Interestingly, the daily RSI remains weak at 43.35. However, lower timeframes position XRP in an upward momentum.
Meanwhile, XRP’s weekly RSI registered 27.69 points. This makes it one of the last altcoin projects to be oversold this week. Short-term price action could trigger a reversal from this area if developments move in a positive direction.
Another cryptocurrency giving a buy signal: Ark (ARK)
Another potentially oversold altcoin is Ark (ARK). The token, with a weekly RSI value of 28.23, is trading at $0.849. At the time of writing, ARK was up 3.35%. Like XRP, ARK is also showing a trend reversal with lower time frame RSIs.
Interestingly, the average weekly RSI for the crypto market is 57.11. This increases the relevance of projects below the line. However, having an oversold RSI condition does not guarantee a price recovery. Understanding the reason for this extreme weakness indicator is vital for traders looking to buy signals. 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. When investing, we strongly recommend that you do your own research.
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