The cryptocurrency market is displaying renewed vigor with altcoins showing a strong performance, yet some have entered an overbought phase according to the latest market indicators. A signal of potential sell-offs emerges for certain altcoins, which have surged in value but now exhibit signs that they may have peaked. The overall market has seen an impressive growth, adding approximately $160 billion to its worth since January 23, indicating a widespread rekindled interest in digital assets.
Overbought Alert for Sui Network’s SUI Token
Crypto data analyst CoinGlass’ weekly Relative Strength Index (RSI) heatmap points out that Sui Network’s SUI token is currently overbought. The token, trading at $1.51 with a recent 3.16% increase over the past week, has an RSI of 79.64, a clear signal for sellers. Despite the surge, some indicators suggest SUI’s current growth may be unsustainable, hinting at a potential downturn.
Injective’s INJ Token Exhibits Sell Indicators
Similarly, Injective (INJ) is another altcoin flashing a sell signal due to its high RSI levels. Although its price has risen to $32.82, an increase of 1.44%, the RSI metrics are hinting at a possible reversal in its upward trend. Compared to other altcoins, INJ’s RSI readings are notably higher in both weekly and shorter time frames.
While these RSI readings provide a potential warning to investors, it is crucial to understand that an overbought status does not necessarily predict a price drop or a reversal. The inherent volatility of the crypto market, especially among altcoins, means that they are often sensitive to news and market events which can precipitously impact their value.