Bitcoin (BTC) showing stability in the last three months has many other cryptocurrencies giving signals, while Ethereum (ETH) saw a huge surge after its Exchange-Traded Fund (ETF) approval last week. According to a number of analysts, Bitcoin's massive movement will start when the Ethereum hype stops.
However, even though market attention is currently dominated by these two assets, two crypto assets have been identified as overbought. Reporting from finbold.com, this shows a profitable "selling" opportunity for traders.
In this case, the two overbought coins are seen according to the 24-hour relative strength index (RSI) heatmap from CoinGlass. On May 29, the average daily RSI was 54.84 points, indicating a neutral market. However, cryptocurrencies that are far from this average tend to correct back to more balanced levels. The two coins, namely:
ConstitutionDAO (PEOPLE) Shows Continuing Overbought Status
The first token to be overbought was ConstitutionDAO (PEOPLE). Even though this project has been disbanded, this token continues to experience price increases. PEOPLE is currently trading at US$ 0.081, up 1.81 percent in a day. Based on the latest data, the daily RSI shows 73.83, slightly below the weekly RSI.
PEOPLE's price increase despite the project being disbanded raises questions about its fundamentals. Traders should be careful as high RSI often occurs after a period of significant price increases.
Economic Data That Can Trigger Volatility, Bitcoin Predicted to Stagnant
Natural Bounce Token (AUCTION).
Bounce Token (AUCTION) went from oversold to overbought status in 24 hours. According to CoinGlass, AUCTION is currently trading at US$ 26.35, up 46.87 percent in the last 24 hours. The hourly RSI reached 91.76.
The 4-hour, 12-hour, and 24-hour RSI are recorded at 89.14, 82.94, and 75.99 respectively. However, the weekly RSI is lower, 35.62.
Although an overbought RSI can signal selling, it is not a sure indicator of a price correction. Traders should consider each token's fundamentals and market conditions before making a decision. Make sure to carry out independent analysis and good risk management.
Note: This news is an expert prediction, please see the disclaimer at the bottom of the article
