Altcoins with Extreme Values Based on RSI
The analytics firm Santiment has identified altcoins that are currently showing bullish and bearish divergences based on the Relative Strength Index (RSI).
The RSI is a momentum metric that tracks recent price changes. The 1-day RSI is particularly relevant for this analysis.
Overheated or Undervalued?
A high RSI value can indicate that an asset is overheated and at risk of a bearish reversal. A value of 70 or higher is considered significant.
Conversely, an RSI of 30 or lower suggests that the price may be undervalued, potentially signaling an upcoming upward reversal.
Altcoins Showing Divergence
Santiment has shared a chart showing the trend in the 1-day RSI for several altcoins in the top 150 market cap list over the past year.
One notable altcoin is Bonk, which has experienced a sharp rally but may be approaching the end of its strong run.
On the other hand, altcoins like Elrond (ELGD), Arweave (AR), and Bonk (BONK) have low levels of 1-day RSI, indicating potential undervaluation and a bullish divergence.
Potential Price Movements
Coins with bullish divergences, such as BONK, may see price increases to catch up with other altcoins. Conversely, altcoins like MKR may experience corrections to align with the rest of the market.
BONK Price
BONK has recently experienced a downward trajectory in its price. However, there are signs of a turnaround as the price has risen by over 22% in the past 24 hours.
Hot Take: Potential Opportunities for Altcoin Traders
Based on Santiment’s analysis of altcoins’ RSI values, there are potential opportunities for altcoin traders to capitalize on bullish and bearish divergences. Understanding the RSI can help you identify overvalued or undervalued assets and make informed trading decisions. Keep an eye on coins like BONK that are showing bullish divergences, as they may experience price rises. Similarly, coins like MKR may see corrections to align with the overall market. Stay vigilant and use these insights to navigate the altcoin market effectively.
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