Leading crypto Bitcoin has fallen below the psychological $70,000 level again. As BTC dragged the market lower, most altcoins followed suit. However, some tokens are still more overbought. Crypto analyst Vinicius Barbosa warns investors about one of them, Nervos Network.
The only altcoin in overbought status: Nervos Network (CKB)
Nervos Network is currently the only altcoin in the market with an overbought daily Relative Strength Index (RSI). Investors are wondering whether this is a sell signal or evidence of significant strength for CKB given the overall conditions. CKB, in particular, was overbought in CoinGlass’ three high timeframes based on recent data. CKB’s 4-hour RSI value is 74.98, daily RSI value is 78.5 and weekly RSI value is 78.8.
Interestingly, it is the only altcoin with an overbought Relative Strength Indicator on the 24-hour heatmap. Meanwhile, other cryptocurrencies exhibit a neutral average of 46.82 index points. CKB is trading at $0.0361, up 8% in the last 24 hours. However, the overbought position follows an impressive 100% rally in the last seven days. As a result, Nervos was valued at over $1 billion last week, drawing investors’ attention to the project.
Cryptocurrency market in a week full of uncertainties
The stock market and other leading financial assets performed similarly to cryptocurrencies. Therefore, this latest price movement is not specific to cryptocurrencies. Analysts blame generalized bearish sentiment on US CPI forecasts, which are expected to rise 3.4% year-on-year.
However, TradingView’s total crypto market cap index still shows a strong upward trend. It also shows that this will continue. The index is particularly above the 50-day exponential moving average (EMA) at $2.50 trillion. In this context, a drop to $2.36 trillion, testing the 50-day EMA as support, would be a common swing.
All things considered, the seemingly overbought CKB has the potential to continue rising under favorable conditions. This requires a bullish cryptocurrency market with total capitalization above the 50-day EMA and solid fundamentals that include increasing demand for the token and positive developments for the Nervos Network.
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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