This week two oversold cryptocurrencies show a buy signal
The cryptocurrency market remains unstable, with a global market cap of around $2.47 trillion, indicating a modest 0.8% change in the past 24 hours. The trading volume has surged to $48.8 billion, showing high investor activity and interest.
Despite the bustling activity, Bitcoin (BTC) and Ethereum (ETH) continue to dominate the market, with 51.3% and 17.3% shares, respectively. However, the overall market’s Relative Strength Index (RSI) sits at 34.76, indicating that many assets are potentially oversold.
This presents an opportunity for savvy investors to identify undervalued cryptocurrencies with the potential for a short-term rebound within the week.
From an optimistic perspective, Finbold identified two cryptocurrencies that are notably oversold on a short-term basis, as evidenced by their RSI readings, according to data from CoinGlass.
Avalanche (AVAX) – Why it is a good buy
Avalanche (AVAX) shows several factors that could make it an attractive buy. The 24-hour RSI for AVAX is 29.33, placing it in oversold territory. Historically, assets with such low RSI tend to experience price corrections. However, oversold conditions don’t guarantee a rebound, and the market may stay oversold for extended periods.
Additionally, AVAX has experienced a 4.7% decrease in price over the past 24 hours, suggesting a recent sell-off that might be an overreaction by the market. This dip presents a potential entry point for investors looking to capitalize on the subsequent price recovery.
Starknet (STRK) – Why it is a good buy
Starknet (STRK) presents several buy signals based on its RSI and additional technical indicators. Both the 24-hour and 12-hour RSI values for STRK are well below 30, standing at 26 and 26.48, respectively, indicating strong oversold conditions. This makes STRK a prime candidate for a potential price rebound.
Unlike AVAX, STRK has experienced a positive price change of 0.98% over the past 24 hours. This positive momentum, despite the oversold RSI, suggests that the market is beginning to recognize its undervaluation, which could lead to further price increases.
For investors and traders looking for buy opportunities this week, AVAX and STRK present interesting cases based on their current RSI values and recent price movements. However, it’s crucial to remember the high volatility of cryptocurrencies, where market conditions can rapidly change.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.