Crypto Market’s Most Overbought Altcoins Revealed
As the general rise in the crypto market continues, most altcoins recorded significant gains over the week alongside the largest cryptocurrency Bitcoin (BTC). This positive outlook in the market has led some altcoins into the overbought zone, reaching a point that poses a “danger”. We have compiled 3 altcoins that have reached the point of triggering the Relative Strength Index (RSI) alarm for you.
Investors Should Be Cautious With Bonk (BONK)
Among the altcoins giving the most overbought signals of the day is Bonk (BONK), a dog-themed altcoin operating on the Solana (SOL) Blockchain. As of the time this article was prepared, BONK’s RSI gives an overbought signal at the level of 79.32 in the last 24 hours and 72.41 in the last 4-hour timeframe.
Bonk rose along with the price increase of SOL, touted as the strongest competitor to Ethereum (ETH). However, the investor demand for the altcoin, which is entirely speculative, may not be sustainable in the long term and a pullback in BONK’s price could be in the cards. Investors should be careful when buying BONK.
Holo’s (HOT) RSI Raises Alarm
The service token of Holo, a platform created to host Holochain’s decentralized applications, HOT is trading at $0.00213 at the time this article was written and the altcoin’s RSI gives an overbought signal both in the daily and weekly timeframes.
The altcoin’s RSI is at the level of 85.85 in the weekly timeframe and 77.05 in the last 24 hours. However, it is still moving within a ‘strong’ momentum in the 4-hour timeframe. Overall, it appears that the RSI is ringing alarm bells for HOT and investors need to be careful.
JOE (JOE) Among the Altcoins Raising Alarm
The service token of TraderJoe, JOE (JOE), stands out as an altcoin that investors need to be careful about when buying. JOE saw high demand with the growth in Avalanche‘s (AVAX) DeFi ecosystem. TraderJoe is a decentralized cryptocurrency exchange and one of the most popular and capitalized protocols on Avalanche.
The protocol, in particular, recorded a significant increase in the Total Value Locked (TVL) indicator, which also reflects on the performance of the token. JOE, trading at $0.5755 with an increase of 14.02% in the last 24 hours, is one of the altcoins giving the most overbought signal in the daily and weekly timeframes. JOE’s RSI value is at the level of 83.48 in the weekly timeframe and 79.47 in the last 24 hours.
