This week two oversold cryptocurrencies receive a buy signal

Last week, the cryptocurrency market went through a rollercoaster of trading activities, initially starting on a positive note before taking a turn for the worse by the end of the week. At first, there was a wave of optimism with several analysts predicting that Bitcoin (BTC) would reach new peaks. However, things took a different turn on Friday when robust U.S. job data was released, hinting at a more aggressive stance by the Federal Reserve.

As a result, many cryptocurrencies have been oversold, potentially creating an opportunity for buyers to “buy the dip.” This sudden shift from a bullish to a bearish market sentiment was reflected in the overall Relative Strength Index (RSI), with an average 4-hour RSI of 34.47, according to CoinGlass.

In light of this market crash, Finbold has pinpointed two short-term oversold cryptocurrencies that might be worth considering.

Dogwifhat (WIF) is showing promising signs as a potential buy opportunity. With a 4-hour RSI of 28.92 and a 24-hour RSI of 41.43, WIF appears to be oversold in the short term but is showing signs of stability over a daily timeframe. The RSI pattern suggests a potential rebound as selling pressure eases, with a 1-week RSI of 50 indicating a neutral long-term trend.

Chainlink (LINK) also presents an interesting case as an oversold cryptocurrency poised for a potential recovery. With a 4-hour RSI of 29.51 and a 12-hour RSI of 34.38, LINK shows signs of stabilization over the daily timeframe. The 1-week RSI of 50 supports a neutral long-term trend, suggesting a potential short-term correction.

Both WIF and LINK are currently trading at $2.60 and $15.5, respectively, with their RSI indicators pointing towards a potential rebound opportunity. However, it’s important to note that an oversold RSI status does not guarantee a price recovery and could also indicate a bearish trend.

Cryptocurrencies are known for their volatility, and market conditions can change rapidly. It’s essential to remember that investing in cryptocurrencies is speculative, and there is a risk of losing capital. This information should not be considered as investment advice.