Despite the broader cryptocurrency market remaining bearish, several assets are witnessing increased capital inflows in the short term.
This surge has propelled certain cryptocurrencies into overbought territory, as their Relative Strength Index (RSI) readings indicate.
Notably, the RSI, a momentum oscillator that measures the speed and change of price movements, typically signals overbought conditions when it exceeds 70. This suggests an asset may be overextended and due for a potential correction.
Picks for you
In this context, Finbold has identified the following two digital assets worth avoiding now due to their overbought status.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is currently among the high-flying digital assets. As of press time, cryptocurrency was trading at $385, gaining 30% on the daily and weekly charts.
Indeed, investors should proceed cautiously, as the one-hour RSI is 74.16, and the 12-hour RSI is 68.79—both near the threshold typically indicating overbought conditions.
It’s worth noting that BCH’s rally aligns with the short-term market recovery following significant capital outflows. This shift came after markets reversed course due to strategic crypto reserve announcements.
The latest recovery has emerged amid reports that U.S. President Donald Trump might roll back renewed trade tariffs, which had previously impacted both the cryptocurrency and equities markets.
While BCH’s strong performance reflects growing investor interest, these RSI levels increase the likelihood of a price correction in the near future.
Meanwhile, technical indicators suggest that Bitcoin Cash might extend its recent momentum and target the $500 mark. For instance, an analysis by Profit Mind indicated that BCH is currently trading within a descending channel on the daily chart and facing persistent bearish pressure.
However, BCH appears to be testing the channel’s lower boundary near a key support zone. If bulls push the price above the descending channel, a breakout could trigger a rally toward the $500 mark.
Jito (JTO)
Jito (JTO) is also on an upward trajectory in the short term, a price movement that has elevated the asset into the overbought zone. The asset’s one-hour RSI stands at 71.39, while its 12-hour RSI is at 51.51.
Despite JTO’s impressive gains, these metrics caution against entering new positions, as the cryptocurrency could face downward pressure following its rapid ascent.
As of press time, JTO was trading at $2.628, surging 25.38% in the last 24 hours. This surge coincides with a rise in trading volume, which has spiked over 30% during the same period.
Notably, JTO has witnessed increased investor interest, mainly driven by its recent listing on the South Korean exchange Upbit.
At the same time, Jito, the largest liquid staking project on Solana, boasts a total value locked (TVL) of $2.23 billion as of press time.
Despite overbought RSI levels signaling a potential correction, the next investment decision for Bitcoin Cash and Jito will depend on the broader market trajectory.
Featured image via Shutterstock
