finbold.com
Fear has taken over as the dominating sentiment in the cryptocurrency market since the start of April. Cryptocurrencies have crashed by over 5% and many are now oversold in what could be a “buy the dip” signal.
In a staggering turn of events, the crypto landscape went from bullish to bearish in a few days. Notably, the overall Relative Strength Index (RSI) evidences that with an average 4-hour RSI of 35.33, according to CoinGlass.
Currently, many cryptocurrencies navigate between weak to oversold in the 4-hour momentum indicator, which could hint at two possible scenarios:
First, this could indicate an overall trend reversal and a bearish dominance moving forward. However, the dip can create buying opportunities for mid to long-term investments, acting as a buy signal for savvy investors.
From an optimistic perspective, Finbold selected two short-term oversold cryptocurrencies to consider buying in this crash. For that, we want a strong combination of a below-average 4-hour RSI and an above-average daily RSI.
Buy signal for Near Protocol ($NEAR)
In this context, the Near Protocol ($NEAR) has one of the most promising buy signals according to this technical indicator.
Besides solid fundamentals and strong growth in 2024, $NEAR has lost 6.21% in this dip, trading at $6.30. The token now shows a 4-hour RSI of 31.35, while holding a daily RSI of 47.46. Therefore, above the cryptocurrency market’s daily average of 45.10.
Buy the dip? Bitcoin ($BTC) is oversold
Bitcoin ($BTC) is also a possible strong buy at the current dip, with a similar status as the Near Protocol. The leading cryptocurrency has a 31.73 and 47.41 4-hour and daily Relative Strength Index, respectively.
Bitcoin is trading at $64,428 after losing 4.78% of its price in the last 24 hours.
Nevertheless, having an oversold RSI status does not guarantee price recovery. Understanding this extreme-weakness indicator is vital for investors looking to buy signals. Cryptocurrencies are highly volatile assets, and everything can change in the blink of an eye.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.