Sell signal issued for two cryptocurrencies that were overbought this week
The world of digital currency is experiencing a period of uncertainty, influenced by larger economic forces. Recent data revealed a surprising surge in U.S. job growth, surpassing expectations by a significant margin. This indicates that the economy is handling higher interest rates well, reducing the likelihood of rate cuts that impact the flow of money into riskier assets like cryptocurrencies.
Against this economic backdrop, Finbold has pinpointed two cryptocurrencies that are currently experiencing excessive buying activity and may present a good opportunity to sell.
In the realm of digital assets, Binance Coin (BNB) is currently priced at $700.30, experiencing a slight 0.39% decrease. The 24-hour Relative Strength Index (RSI) for BNB is 75.56, signaling that it is overbought and under strong buying pressure that may not be sustainable. Additionally, the 1-week RSI of 82.52 suggests a prolonged overbought condition, indicating a potential price correction in the near future.
ORDI, the first token created using the BRC-20 standard, is currently trading at $62.888 with an 8% increase. The 24-hour RSI for ORDI is 74.65, showing that it has been overbought recently. With a surge of nearly 17%, reaching close to $57.5, ORDI’s rapid rise coupled with high RSI values suggests that a price correction may be on the horizon as the market settles.
Both BNB and ORDI are displaying elevated RSI levels, indicating they are currently overbought and could potentially see a price correction. However, it is important to remember that an overbought RSI does not guarantee an immediate correction. This status often follows a period of strong performance and can be sustained during prolonged bullish markets. Therefore, while technical indicators advise caution, investors should also consider the fundamental aspects of each cryptocurrency before making any investment decisions.
Please note that the information provided in this article should not be considered as investment advice. Investing in digital assets is speculative and involves risk to your capital.
