Cryptocurrency investors are often faced with the challenge of deciding which coins to trade. In an environment rife with uncertainty, the savvy choice sometimes involves not trading particular cryptocurrencies, especially when market trends are unclear. Speculating based on overbought or oversold signals can be risky without solid evidence of a trend shift. It is also prudent to avoid assets that are hovering around critical support or resistance levels until a definitive movement is observed. Here’s a rundown of which digital assets to steer clear of in the approaching week.
Bitcoin’s Resistance Test at $52,000
Bitcoin (BTC), known for its market dominance, is currently at a crucial juncture. Investors are being cautioned against trading BTC as it approaches the $52,000 resistance level, a price point that has historically been significant throughout 2021. Since February 14, Bitcoin has had lackluster trading volume, signifying market indecision. Market participants would be wise to hold off on transactions until the forthcoming price direction becomes apparent.
Arkham’s High RSI Warning Signal
The cryptocurrency Arkham (ARKM) is experiencing a surge, indicated by an ‘overbought’ status according to the Relative Strength Index (RSI) across four distinct time frames. Such strong market interest often characterizes bull runs. Nevertheless, the absence of a reversal signal, combined with the RSI at heightened levels, hints at the potential for a sharp correction. Thus, caution is advised for those considering trading ARKM, which has recently climbed to $0.82, marking a 23.16% price increase within 24 hours.
Jupiter’s Contrasting Technical Indicators
On the other hand, Jupiter (JUP) is showing ‘oversold’ momentum with a daily RSI of 29.94, yet its 4-hour RSI is neutral, which could indicate a possible trend reversal and an opportunity for investors. Despite the mixed signals, the JUP team’s recent airdrop adds an element of risk to the asset. Investors should, therefore, watch JUP’s market activity closely over the next week.