finbold.com
Greed has overtaken the cryptocurrency market, and most projects have reached an overbought status in leading indicators. In such a risky scenario, there are three cryptocurrencies more affected by these indicators, which investors should avoid trading next week.
Notably, the Relative Strength Index (RSI) heatmap by CoinGlass shows this overall overbought status in the 1-week time frame. On December 15, the average RSI was 72.05 points – already overbought.
In particular, three tokens also have a higher RSI on the 4-hour and 24-hour time frames. For proper risk management, cryptocurrency traders should avoid trading the following three cryptocurrencies next week.
Bonk (BONK), Solana’s memecoin
Bonk (BONK) is on hype, trending on social media while accruing massive gains for early buyers. However, its fully speculative nature summed up with a high RSI carves and extra risk for speculators.
This memecoin is a self-proclaimed first dog-themed coin on Solana (SOL). Considering its gigantic 60 trillion BONK circulating supply, CoinGlass indexes it as 1000BONK, priced at $0.028445, already down 12.65% in the day.
Interestingly, BONK remains overbought with 76.41 and 82.52 RSIs in both the 4-hour and 24-hour charts.
Avoid trading Aave (AAVE) next week
Differently from BONK, Aave (AAVE) is a solid DeFi project to invest in for 2024. It is the leading lending platform supporting more than 10 blockchains, using its token for governance and liquidity mining. Interestingly, it registers a strong momentum on the 24-hour Relative Strength Index.
Nevertheless, AAVE looks overbought in the 4-hour and 1-week periods, with 78.07 and 79.38 RSI points, respectively. The token is trading at $114.95 by press time, up 6.94% in the day.
Internet Computer Protocol (ICP) to be avoided next week
The last cryptocurrency that speculators should avoid trading at this point is the Internet Computer (ICP) token.
Essentially, ICP is priced at $6.699, up 4.36% in the last 24 hours and overbought in all time frames. The token has a 74.9, 76.86, and 89.49 in the 4-hour, 24-hour, and 1-week RSI, respectively.
All things considered, any of these three mentioned cryptocurrencies to avoid trading next week might still perform well in the volatile and unpredictable cryptocurrency market. Value is subjective, and speculation could drive prices, capitalization, and ranks upward despite the mentioned aspects.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.