Identifying cryptocurrencies in oversold conditions using trend reversal indicators can be a valuable buying signal for crypto investors who utilize technical analysis. Essentially, an oversold buying signal for an asset showing extreme weakness in higher time frames can be seen with the Relative Strength Index (RSI). At the same time, a divergence in lower time frames indicates a potential trend reversal. This is due to the market’s movement within volatile cycles. Consequently, any movement will inevitably encounter a correction in the opposite direction.
Current Status of Jupiter (JUP)
According to the RSI heatmap provided by CoinGlass and its data, as of today, there are only two tokens indicating oversold conditions.
The first one is Jupiter (JUP). Jupiter faced consecutive sell-offs and was seen to have fallen into the oversold region with a 24-hour RSI value of 29.92. In addition, RSI values marking 3 different time frames continue to point to strong momentum that could trigger a reversal.
The JUP price is trading at $0.4835, with a 2% increase during the day. There were many comments suggesting to stay away from JUP due to an expected sell-off related to a recent massive airdrop, but this situation may have changed, and the momentum could shift in favor of the bulls.
Ark (ARK) Indicates Oversold on Weekly RSI
Secondly, Ark (ARK) stands out as the other altcoin facing a single oversold condition in the weekly time frame. Notably, the graph below shows dashed lines indicating a rapid change to a good level supporting ARK’s strong appearance from oversold RSI.
Specifically, ARK’s 7-day RSI value is seen at 24.88. The buying signal for ARK, in particular, is found in the area where the 24-hour RSI moves towards neutral at 43. ARK token experienced a 10.95% loss in value over the past week and traded at $0.848.
Despite all this, having RSI values indicating oversold cannot be interpreted as a definite indicator that the price will recover. It is important to remember that the cryptocurrency market is highly volatile and everything can change in an instant.
