Despite the cryptocurrency market’s substantial gains that propelled prices past the $50,000 mark, the latest US inflation data release triggered a decline, prompting concerns of a price correction for Bitcoin and other altcoins. Some previously heavily purchased cryptocurrencies managed to avoid this downward adjustment, hinting at a possible upcoming downturn.
Crypto Market’s Volatile Trend
The crypto market this week is poised to mirror broader trends, possibly offering investors opportunities to sell. Yesterday’s abrupt drop didn’t affect all cryptocurrencies equally; some maintained their momentum, leading to overbought conditions. With the recent sell-off, the Crypto Total Market Cap Index suffered a $55.872 billion loss in under a day, decreasing the market’s total value to $1.784 trillion.
Chromia’s Overbought Status
Chromia (CHR) has been identified as overbought, based on the latest RSI heatmap, with the highest weekly RSI in the market, signaling potential selling pressure. Despite a minor 1.57% drop in the past 24 hours, CHR trades at $0.3619, maintaining a high weekly RSI of 96.04. The daily RSI also exceeds 60, suggesting an impending shift in momentum.
Stacks Faces Similar Overbought Signals
Stacks (STX) likewise shows signs of overbought conditions with a weekly RSI of 87.34, even as its price increased by 3.48%, reaching $2.11. RSI analysis on different time frames—daily, 4-hour, and hourly—points to overbuying, except for a less strong structure indicated by the 15-minute view. These high RSI values could be considered signals for investors to consider selling, although the RSI indicator is not infallible.
Both Chromia and Stacks highlight the need for traders to closely monitor RSI indicators for signs of when to sell. Amid market uncertainty, such tools are vital for making informed decisions. The recent crypto market fluctuations underscore the volatility inherent in digital asset trading and the importance of staying attuned to market indicators.