Three Overbought Cryptocurrencies to Avoid Buying Next Week
When it comes to cryptocurrencies, the market is highly volatile and operates in alternate trends. As an investor, it’s crucial to exercise caution with coins that have already experienced significant gains. To identify digital assets that might be overbought or trading at a premium, Finbold turned to the Relative Strength Index (RSI) heatmap on CoinGlass.
Injective Protocol (INJ)
Injective Protocol (INJ) was recommended as a top buy on October 21, proving to be a profitable move with over 39% price gains in a week. However, the RSI for INJ currently sits at 91.02 points in 24 hours and 73.05 points in seven days, indicating an overbought status. This could potentially lead to a trend reversal for INJ in the following week.
Bluzelle (BLZ)
Bluzelle (BLZ) is trading at $0.216 with a 17.42% price gain in the same period. The RSI for BLZ accumulated 77.55 points in seven days, suggesting it may be overbought and could pivot towards a bearish trend. However, the 24-hour RSI indicates strength with 66.29 points.
Unifi Protocol DAO (UNFI)
Unifi Protocol DAO’s token has the lowest overbought status among the mentioned assets but is still relevant due to its low market cap and liquidity. UNFI is currently priced at $7.80 with a 19.5% gain in a week and a weekly RSI of 71.5, suggesting it is already overpriced within this time frame. However, investors must remain cautious due to its susceptibility to high volatility.
It’s important to note that this report only considers one technical analysis indicator. Other factors should be taken into account when making financial decisions, as “overbought” assets may continue in a bullish trend if demand continues to increase.
Hot Take: Proceed with Caution
While cryptocurrencies offer the potential for extraordinary gains, it’s essential to approach the market with caution. The three cryptocurrencies mentioned – Injective Protocol (INJ), Bluzelle (BLZ), and Unifi Protocol DAO (UNFI) – have all shown signs of being overbought. This suggests that a trend reversal or bearish pivot may be on the horizon. As an investor, it’s crucial to consider multiple indicators and factors before making any decisions. Remember, the cryptocurrency market is highly volatile, and careful analysis is key to navigating its fluctuations.
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