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Cryptocurrencies have registered massive gains in the past seven days, most of which have reached an overbought status. However, the cryptocurrency market has its laggards, now recovering from weak price action and gaining momentum.
Investors can benefit from technical analysis buy signals. In particular, from indicators suggesting trend reversals for cryptocurrencies that are picking up steam.
Therefore, Finbold turned to CoinGlass’s Relative Strength Index (RSI) heatmap on March 3, looking for insights. From there, we spotted two recovering cryptocurrencies with solid fundamentals that are gaining momentum in the weekly time frame.
Strong buy signal for a recovering Monero (XMR)
First, Monero (XMR) is recovering from a huge drop as low as $100 in early February, following bearish news. On that occasion, Binance announced the delisting of the leading privacy coin, surprising the market that panic-sold XMR.
This event gave Monero an oversold weekly RSI, from which the solid project is recovering amid a 16% 7-day surge. Notably, XMR reached a neutral 42.52 RSI, trading at $148.98 by press time.
Thus, a full recovery is now on the horizon with the suggestion of a trend reversion, which investors can see as a strong buy signal this week for a mid to long-term bullish forecast. Reaching a 10 times market cap increase in 2024 is possible for Monero, given the right conditions.
In the meantime, short-term traders can possibly wait for better entry points and avoid exposure in a green week.
THORChain (RUNE)
THORChain (RUNE) is another cryptocurrency with solid fundamentals and significant recovery, but it is still lagging behind the market.
Interestingly, RUNE is now above the neutral-50 weekly RSI, with shy gains of nearly 4% in this time frame. Trading at $5.61, THORChain’s daily RSI also shows a growing momentum that traders could interpret as a buy signal.
The project is a cross-chain and decentralized exchange protocol built to facilitate swaps between different blockchains. On that note, an overall bull market could drastically increase the demand for its solution and RUNE.
On the other hand, the buy signal could be invalidated if these two recovering cryptocurrencies fail to embrace the momentum. The crypto market’s volatility and fast-moving characteristics could backfire if cryptocurrencies enter a correction phase.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.