Altcoin trading in the highly volatile world requires knowledgeable investors to know how to avoid unnecessary risks. For instance, when an altcoin’s Relative Strength Index (RSI) rises above the 70 level, this is a potential overbought signal and is considered indicative of an impending price drop. Currently, three particular altcoins are showing warning signs with high RSI values. In this context, it is important for investors to be cautious and implement strict risk management strategies. Knowing which altcoins to avoid investing in is as important as knowing where to invest. Accordingly, we have identified three particularly high-risk altcoins for you, taking into account the RSI indicator.
BNB (BNB) Signals Overbought Conditions
BNB stands out as the first altcoin signaling overbought conditions. BNB is trading at $319.81 with a market cap of $48.24 billion at the time this article was prepared. BNB’s price has a 4-hour RSI value above the average at 62.56, with a daily decrease of 3.92%.
Moreover, its 24-hour and 1-week RSI values are at 79.07 and 82.94, respectively. These figures from CoinGlass as of December 29 indicate that BNB is overbought and suggest a high risk in Binance‘s altcoin.
Investors Should Also Be Cautious with Astar (ASTR) and Skale (SKL)
Astar (ASTR) and Skale (SKL) are also altcoins that are signaling overbought conditions. Interestingly, ASTR’s 24-hour RSI value is higher at 78.06, and it is trading at $0.12721 with a 0.92% decrease at the time this article was written.
SKL’s RSI is pointing to a quite high 1-week RSI value of 92.38, while it is trading at $0.07887 with a 9.22% decrease over the last 24 hours. Both altcoins show overbought signals over a broader time frame and are above average RSI levels in the short term.
However, it is important to underline that a high RSI of an asset does not guarantee poor performance in the future. Despite the extremity in these altcoins’ RSI values, their prices could still rise.
