Purchase signal identified for 2 oversold cryptocurrencies this week
Last week, the crypto market witnessed a rollercoaster of trading activities, starting strong but ending on a downward trend. At first, there was a wave of optimism with analysts predicting Bitcoin (BTC) to reach new highs. However, the release of strong U.S. job data on Friday shifted the sentiment, suggesting a more hawkish approach from the Federal Reserve.
This shift caused many cryptocurrencies to become oversold, potentially creating an opportunity for investors to “buy the dip.” The overall Relative Strength Index (RSI) moved from bullish to bearish in just a few days, with the average 4-hour RSI standing at 34.47, according to CoinGlass. In this evolving landscape, Finbold has identified two oversold cryptocurrencies that could be worth considering during this market downturn.
Dogwifhat (WIF) stands out as a potential buy opportunity, with a 4-hour RSI of 28.92 and a 24-hour RSI of 41.43. These indicators suggest that WIF is oversold in the short term but displays signs of stability over the daily timeframe. This RSI pattern hints at a potential rebound as selling pressure eases, with a neutral long-term trend indicated by a 1-week RSI of 50.
Meanwhile, Chainlink (LINK) also shows promise as an oversold cryptocurrency ready for a potential turnaround. With a 4-hour RSI of 29.51, a 12-hour RSI of 34.38, and a 24-hour RSI of 42.20, LINK indicates signs of stabilization over the daily timeframe. Similar to WIF, a 1-week RSI of 50 suggests a neutral long-term trend, pointing towards a possible short-term correction.
Both WIF and LINK present compelling buy signals based on their RSI indicators for a week-long investment perspective. However, it’s important to note that an oversold RSI status does not guarantee price recovery and could also signify a bearish trend. The cryptocurrency market is highly volatile, and investors should proceed with caution, as investing in such assets always carries risks.
Disclaimer: The information provided in this article is not intended as investment advice. Investing in cryptocurrencies is speculative, and there is always a risk of losing your capital.
