The Cryptocurrency Market Retraces, Creating Buy Signals for Long-Term Investors
The cryptocurrency market has experienced a recent retracement, resulting in a loss of over $250 billion in total capitalization since March 14. However, this price correction has created potentially good entry points for long-term investors. Despite the retracement, the market remains strong, which is a normal occurrence in bull rallies. According to data from CoinGlass on March 17, the weekly Relative Strength Index (RSI) indicates that most cryptocurrencies should still perform well in larger time frames.
Cardano (ADA) Shows Strong Buy Signal
Cardano (ADA) is a layer-1 blockchain project that recently underwent a relevant correction. In the last 24 hours, ADA lost 7.63% of its value, causing its daily RSI to drop below neutral-50. However, Cardano is still holding strong above the average weekly RSI among all cryptocurrencies. This makes ADA a potentially good buy at $0.67 if the market continues to grow and Cardano’s fundamentals remain positive.
Polkadot (DOT) Entry Point Demonstrates Strength
Polkadot (DOT) is another layer-0 blockchain project that is in a similar situation to Cardano regarding its RSI. DOT experienced a price correction in the past few days, bringing its daily RSI to 51.95 – right at the edge of neutrality. Despite losing 6.4% in the last 24 hours, DOT still maintains a strong weekly Relative Strength Index of 67.23, indicating long-term continuation.
It’s worth noting that there are several other cryptocurrencies in similar situations to Cardano and Polkadot. To identify potential buy signals in the market, savvy investors should consider solid fundamentals, a strong long-term perspective, and relevant short-term corrections. However, it’s important to remember that cryptocurrencies are highly volatile and unpredictable assets, and there are no guarantees of positive investment returns. Therefore, remaining cautious is crucial to avoid significant losses.
Hot Take: Look for Buy Signals in Cryptocurrencies with Long-Term Strength
The recent retracement in the cryptocurrency market has created buy signals for long-term investors. Despite the price correction, the market remains strong overall. Cardano (ADA) and Polkadot (DOT) are two cryptocurrencies that show potential as buy signals:
- Cardano (ADA) experienced a relevant correction but still holds strong above the average weekly RSI among all cryptocurrencies. ADA is a potentially good buy at $0.67.
- Polkadot (DOT) went through a price correction as well but maintains a strong weekly Relative Strength Index, indicating long-term continuation.
While these cryptocurrencies show promising signs, it’s important to approach investments in the crypto market with caution due to its volatility and unpredictability.
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