Bitcoin has been moving without a clear direction for some time, causing confusion in the cryptocurrency market. Although the largest cryptocurrency reached a new peak of $52,985 on February 20th, it quickly pulled back to the bottom of its consolidation range, negatively impacting many altcoins that had started to move upwards. This movement of Bitcoin has increased concerns about a potential reversal in the trend for some altcoins.
JasmyCoin (JASMY) and Frontier (FRONT) RSI Levels Raise Alerts
After surpassing the psychological resistance level of $50,000, Bitcoin has been trading in a narrow range since February 14th, but the rapid pullback on February 20th disrupted the positive mood in the market, prompting investors to reassess their positions in altcoins. At this point, two altcoins, in particular, stand out. The first of these altcoins is JasmyCoin (JASMY), which analysts indicate is in overbought territory.
Based on the weekly Relative Strength Index (RSI) heatmap provided by CoinGlass, JASMY is currently signaling an alarm. With a weekly RSI value of 77.49, JASMY has gained 54.24% over the past seven days, yet its current price of $0.0099 presents a significant sell signal.
Similarly, Frontier (FRONT) is also signaling overbought with a weekly RSI of 79.39. Despite trading at $0.54 and having increased by 6.98%, the discrepancy between FRONT’s weekly standing and short-term indicators suggests that a potential trend reversal could be on the table.
RSI Indicator Is Not a Sole Guide
The overbought signal from the RSI indicator could trigger a significant correction in these altcoins following the recent bull runs. However, it is important to note that an overbought RSI for an altcoin does not guarantee a price drop or a trend reversal. As is well known, the cryptocurrency market is highly volatile and is famous for being influenced by news and external events.
Investors who rely on trend indicators like RSI should consider multiple factors before making trading decisions. While indicators like RSI provide valuable information about market conditions, they are not definitive guides on their own. Additionally, the performance of altcoins is directly linked to the performance of leading assets like Bitcoin.
