Purchase signal issued for two oversold cryptocurrencies this week
The cryptocurrency market is currently experiencing fluctuations, with a global market cap of around $2.47 trillion, showing a slight 0.8% change in the last 24 hours. Trading volume has surged to $48.8 billion, indicating a high level of investor activity and interest.
Bitcoin (BTC) and Ethereum (ETH) continue to dominate the market with shares of 51.3% and 17.3% respectively. Despite the busy market, the Relative Strength Index (RSI) of the overall market is at 34.76, suggesting that many assets may be oversold.
This presents an opportunity for smart investors to identify undervalued cryptocurrencies that may experience a short-term rebound within the week.
In a positive light, Finbold has identified two cryptocurrencies that are significantly oversold in the short term, based on their RSI readings according to CoinGlass data.
Avalanche (AVAX) – Why it’s a good buy
Avalanche (AVAX) exhibits several factors that make it an attractive buy. The 24-hour RSI for AVAX is 29.33, indicating oversold conditions. Historically, assets with such low RSI tend to undergo price corrections. However, it’s important to note that oversold conditions do not guarantee a rebound, and the market may remain oversold for extended periods.
Additionally, AVAX has experienced a 4.7% price decrease in the last 24 hours, suggesting a recent sell-off that may be an overreaction by the market. This dip presents a potential entry point for investors looking to capitalize on a subsequent price recovery.
Supporting the buy signal, AVAX’s momentum indicator currently shows positive momentum despite the oversold condition. The Williams Percent Range, another momentum indicator, also supports a buy signal, indicating that AVAX is currently oversold.
Despite the sell signals from moving averages, which reflect the recent downward trend, the oversold RSI and positive momentum indicators highlight the potential for a bullish reversal. The average market RSI of 34.76 further emphasizes that AVAX is more oversold compared to the broader market, increasing the potential for a rebound.
Starknet (STRK) – Why it’s 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% in the last 24 hours. This positive momentum, despite the oversold RSI, suggests that the market is starting to recognize its undervaluation, which could lead to further price increases.
Further supporting the buy signal for STRK are the Williams Percent Range indicators. The Williams Percent Range, with a value of -88.235, shows that STRK is heavily oversold, reinforcing the potential for a price increase.
Despite the sell signals from various moving averages, these oversold indicators suggest a high potential for an upward correction. The average market RSI of 34.76 highlights that STRK is significantly more oversold compared to the broader market, increasing the likelihood of a rebound.
For investors and traders seeking buying opportunities this week, AVAX and STRK present interesting cases based on their current RSI values and recent price movements.
However, it’s important to remember the high volatility of cryptocurrencies, where market conditions can change rapidly.
Disclaimer: The content on this site should not be considered investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.
