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The crypto market has started to pick up again after a period of low volume, with most altcoins trading within a consolidation range. Despite the general market consolidation, some altcoins have maintained a strong momentum and have reached an overbought state. These projects may be expected to come under selling pressure in the next few days if they encounter difficulties or if there is a change in trend. The recent increase in the total value of the crypto market also proves this situation, as the market value has increased by nearly 160 billion dollars since January 23. In this context, we have compiled 2 altcoins that are in an overbought condition and giving a sell signal.
Sui Network (SUI) Indicates Overbought Condition
According to the weekly Relative Strength Index (RSI) heatmap from the crypto data platform CoinGlass, Sui Network (SUI) is in an overbought condition. The SUI token currently has the highest weekly RSI in the market. This situation is creating a significant sell signal for the price. At the time of writing, Sui is trading at $1.51, up 3.16% over the last 7 days, but its RSI is at 79.64, indicating an overbought point.
Furthermore, aside from the daily RSI, SUI is showing weakness in all other time frames. This short-term weakness indicates the possibility of a trend reversal at any moment for Sui Network’s native asset.
Injective (INJ) Gives a Sell Signal
Another cryptocurrency potentially in an overbought condition is Injective (INJ). The altcoin is trading at $32.82 at the time of writing, showing an increase of 1.44%. Like SUI, Injective is indicating a potential trend reversal with its low time frame RSI readings.
Interestingly, while other altcoins have higher RSI levels in the seven-day time frame, INJ has the highest level of RSI among the weekly and short-term indicators. This condition suggests that it is significantly above the market average.
Understanding this excessive strength indicator is crucial for investors looking for a sell signal. On the other hand, it should be noted that an altcoin with an RSI at an overbought level does not guarantee a price crash or a trend reversal. The crypto market is highly volatile, and altcoins, in particular, tend to react strongly to news and related events.
