Bitcoin (BTC) has been trading within a specific price range for the past three months. However, the recent approval of an ETF for Ethereum (ETH) has sparked a rise in its price. While the future of the cryptocurrency market remains uncertain, some altcoins have been identified as overbought. CoinGlass data reveals that the 24-hour relative strength index (RSI) heat map showed signs of overbuying in these altcoins, particularly on May 29. Let’s take a closer look at two of them.
Bounce Token (AUCTION) has experienced a significant shift from an oversold position to an overbought situation, as indicated by the 24-hour RSI indicator. CoinGlass’s heat data shows that the token is currently trading at $24.54, representing a 35% increase in the last 24 hours. The hourly RSI value for AUCTION stands at 91.76, indicating a high level of overbuying in a short period. The 4-hour, 12-hour, and 24-hour RSI values for AUCTION are 89.14, 82.94, and 75.99, respectively. However, the weekly timeframe for Bounce Token suggests weak momentum at 35.62, indicating a lack of short-term continuity.
ConstitutionDAO token PEOPLE is another cryptocurrency showing signs of being overbought. Despite the positive price movement that has attracted investors’ attention, the weekly RSI value for PEOPLE has reached an overbought state. However, the recent price movements have caused a turnaround. Although the token saw a 1.81% increase during the day, the price dropped by 12% to $0.07964. This outcome was anticipated based on the indicators. It is important to note that while the overbought RSI indicator suggests a correction, there is no guarantee of such a correction in cryptocurrencies. It is also crucial to understand that these indicator changes typically occur during ongoing bull market periods, when bulls demonstrate strength.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research. Stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.