In the volatile world of altcoin trading, savvy investors know how to avoid unnecessary risks. For instance, when an altcoin’s Relative Strength Index (RSI) exceeds the 70 level, it signals a potential overbought condition, suggesting a price drop may follow. Currently, three specific altcoins are showing high RSI values, signaling caution. Understanding which altcoins to avoid investing in is as crucial as knowing where to invest. Here, we highlight three high-risk altcoins based on their RSI indicators.
BNB (Binance Coin) is the first altcoin giving an overbought signal. With a market value of $48.24 billion, BNB is trading at $319.81 at the time of writing. Its price has decreased by 3.92% daily, and it has a 4-hour RSI value of 62.56, above the average. However, its 24-hour and 1-week RSI values are at 79.07 and 82.94, respectively, indicating a high risk in Binance’s altcoin.
Astar (ASTR) and Skale (SKL) are also showing overbought warning signals. Interestingly, ASTR’s 24-hour RSI value is higher at 78.06, and its price is down by 0.92% at $0.12721. SKL’s RSI is remarkably high at 92.38 for the 1-week RSI, while its price has fallen by 9.22% in the last 24 hours to $0.07887. Both altcoins exhibit overbought signals over a broader time frame and above-average RSI levels in the short term.
Despite the extremity in these altcoins’ RSI values, it is essential to note that a high RSI does not guarantee future poor performance. Prices of these altcoins could still rise despite their current RSI overbought conditions.