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Buy signal for two oversold cryptocurrencies this week

source-logo  finbold.com 22 June 2024 20:56, UTC

The cryptocurrency market remains in a state of flux, with the global market cap hovering around $2.47 trillion, reflecting a modest 0.8% change in the past 24 hours. Trading volume has surged to $48.8 billion, indicating high investor activity and interest.

Notably, Bitcoin (BTC) and Ethereum (ETH) dominate the market, with 51.3% and 17.3% shares, respectively. Despite this bustling activity, the overall market’s Relative Strength Index (RSI) sits at 34.76, signaling that many assets are potentially oversold.

This presents an opportunity for savvy investors to identify undervalued cryptocurrencies with the potential for a short-term rebound (within this week).

From an optimistic perspective, Finbold identified two cryptocurrencies that are notably oversold on a short-term basis, as evidenced by their RSI readings, according to data from CoinGlass.

Avalanche (AVAX) – Why it is a good buy

Avalanche (AVAX) shows several factors that could make it an attractive buy. The 24-hour RSI for AVAX is 29.33, placing it in oversold territory. Historically, assets with such low RSI tend to experience price corrections. However, oversold conditions don’t guarantee a rebound, and the market may stay oversold for extended periods.

Additionally, AVAX has experienced a 4.7% decrease in price over the past 24 hours, suggesting a recent sell-off that might be an overreaction by the market.

This dip presents a potential entry point for investors looking to capitalize on the subsequent price recovery.

Supporting the buy signal, AVAX’s momentum indicator is currently showing a buy signal, reflecting positive momentum despite the oversold condition. The Williams Percent Range, another momentum indicator, also supports a buy, indicating that AVAX is currently oversold.

Despite the strong sell signals from moving averages, which reflect the recent downward trend, the oversold RSI and positive momentum indicators highlight the potential for a bullish reversal.

The average market RSI of 34.76 further emphasizes that AVAX is more oversold compared to the broader market, enhancing the potential for a rebound.

Starknet (STRK) – Why it is a good buy

Starknet (STRK) presents several buy signals based on its RSI and additional technical indicators. Both the 24-hour and 12-hour RSI values for STRK are well below 30, standing at 26 and 26.48, respectively, indicating strong oversold conditions. This makes STRK a prime candidate for a potential price rebound.

Unlike AVAX, STRK has experienced a positive price change of 0.98% over the past 24 hours. This positive momentum, despite the oversold RSI, suggests that the market is beginning to recognize its undervaluation, which could lead to further price increases.

Further supporting the buy signal for STRK are the Williams Percent Range indicators. The Williams Percent Range, with a value of -88.235, shows that STRK is heavily oversold, reinforcing the potential for a price increase.

Despite the sell signals from various moving averages, these oversold indicators suggest a high potential for an upward correction. The average market RSI of 34.76 highlights that STRK is significantly more oversold compared to the broader market, enhancing the likelihood of a rebound.

For investors and traders looking for buy opportunities this week, AVAX and STRK present interesting cases based on their current RSI values and recent price movements.

However, it’s crucial to remember the high volatility of cryptocurrencies, where market conditions can rapidly change

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.