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The cryptocurrency market has reached its highest value in the last 18 months, with a total worth of $1.65 trillion. Along with this increase in market value, many altcoins have seen significant jumps, with some entering the overbought zone. Here are three altcoins that metrics suggest should be approached with caution for a while.
Some Altcoins Face Danger After Major Rise
In the midst of the current bull run, the value of the cryptocurrency market has increased by over 115% since January. It is important to note that the current levels were last seen 18 months ago, in May 2022.
This increase in market value was achieved through significant rises in the price of Bitcoin (BTC) as well as other altcoins. In fact, some altcoins have seen four-digit increases. After the general surge in the market, some altcoins began to show overbought signals. We have compiled three altcoins that are signaling overbought conditions, or in other words, “I’ve risen a lot, I might correct at any moment,” using data from the Relative Strength Index (RSI) heat map of the crypto data platform Coinglass.
Here Are 3 Altcoins Showing Overbought Signals
The RSI metric is currently signaling an alarm for Oasis Network (ROSE), BakeryToken (BAKE), and Injective (INJ). The native asset of Oasis Network, ROSE, has seen a 22.46% increase in the last 24 hours, trading at $0.1229 at the time of writing. The RSI metric for the altcoin is signaling overbought in the 4-hour, 24-hour, and 1-week time frames, with respective levels of 82.71, 77.31, and 95.56.
BAKE, a decentralized exchange token, is also signaling an overbought alarm, albeit at a lower level than ROSE. This indicates that it might be wise to stay away from the token until it exits the overbought level. Currently, the RSI of the altcoin is at 73.38, 76.41, and 82.19 for the 4-hour, 24-hour, and 1-week time frames, respectively.
Injective’s INJ is also signaling an overbought alarm. The weekly time frame RSI for INJ is at an extreme level of 97.33. The 4-hour RSI for the altcoin, however, is at 52.3, which is below the market average of 57.56.
This short-term neutral RSI, amidst one of the highest medium-term overbought conditions, suggests that a pullback might be on the horizon for INJ. Therefore, it could be beneficial for investors to stay away from INJ until a new directional trend forms.
Along with all this, a usual correction occurs in an altcoin during an excessively extended uptrend. However, there are also unusual instances where the rise continues despite the overbought signal. Such a situation is more indicative of increased risk rather than a simple deviation.
