While most cryptocurrencies have fallen sharply this week amid geopolitical tensions following Iran’s attack on Israel, two projects remain overbought. Relative Strength Index (RSI) and gives a potential sell signal. The cryptocurrency market has been declining since April 12. Notably, the average weekly RSI indicator for all cryptocurrencies has fallen, proving the overall loss of momentum. Meanwhile, some altcoin projects maintained a strong RSI indicator, indicating a lack of correlation with the overall market. Therefore, it is suggested that these assets are either supported by strong demand and can maintain this momentum for longer, or they are laggards awaiting further correlation. Analysts collected data to look for potential overbought and oversold signals.
First altcoin on the list: BNB
Notably, the BNB Chain (BNB) token remains overbought on the weekly chart, pointing at the 73.37 RSI. This indicator, well above average, is due to losses of no more than 3.55% over the last seven days. However, despite a fairly strong weekly performance, BNB has a neutral RSI of 45.69 on the daily chart. The short-term neutral RSI generally predicts a more aggressive move up or down after a brief period of consolidation. Therefore, looking at BNB’s 20-week exponential moving average (EMA) can give insight into which direction it could potentially follow.
In this context, according to Finbold analysts, the 20-EMA suggests fundamental support at around $436 per token. This is more than $100 less than BNB’s price of $541 at the time the news was published. Confirming what could be a sell signal for the overbought BNB Chain native token.
Celestia also has an overbought signal
Similarly, Celestia (TIA) remains overbought in a weak market according to the weekly Relative Strength Index. The seven-day chart shows an RSI of 75.39, while TIA is trading at $10.78 with a weekly gain of 2.19%. On the other hand, TIA is trading below Celestia’s short-lived 20-EMA, confirming an overbought cryptocurrency that could visit lower levels soon. This exponential moving average draws potential resistance at $12.69.
Despite the above-mentioned indicators, a solid sell signal is usually the result of deep and thoughtful research where multiple factors are taken into account. Cryptocurrency traders and investors should know that the market is uncertain and things can change in the blink of an eye. cryptokoin.com As we have reported, traders should make investments after comprehensive research.
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