While the cryptocurrency market remains in a consolidation phase, several assets are showing increased activity that warrants caution.
In particular, technical indicators such as the Relative Strength Index (RSI) suggest that some cryptocurrencies are entering the overbought zone.
Typically, an asset is considered overbought when its RSI exceeds 70. Below are two tokens currently in or near that range, ones traders may want to avoid this week.
Mask Network (MASK)
Mask Network (MASK) has risen 4.81% in the past 24 hours to $2.92. However, its 24-hour RSI stands at an elevated 77.87, signaling strong overbought conditions.
Supporting timeframes show similar trends: The 12-hour RSI is at 74.64, and the 4-hour RSI is at 65.7. While momentum appears bullish, high RSI levels often precede a price correction.
Interestingly, MASK remains actively traded despite recent events that negatively impacted its price. The token has shown resilience after being delisted from Binance in April, initially triggering panic selling.
Currently, MASK is trading above its 50-day simple moving average (SMA) of $1.52 and its 200-day SMA of $2.08, indicating a strong uptrend in both the short and long term.
Compound protocol (COMP)
Meanwhile, Compound protocol (COMP) is also nearing overbought territory. It has surged 14.14% in the last 24 hours, reaching $47.14. Short-term indicators are heating up while its 24-hour RSI is 61.68—still below the overbought threshold.
The 4-hour RSI is already at 76.18, and the 1-hour and 12-hour RSIs hover around 66. These levels suggest COMP may be approaching a local top, increasing the risk of a pullback for new buyers.
At its current price, COMP is trading above the 50-day SMA of $42.98, indicating short-term bullish momentum. However, it’s still slightly below the 200-day SMA of $49.12, suggesting it’s nearing a key resistance level.
While solid fundamentals back both MASK and COMP and have long-term potential, their current technical setups suggest traders should proceed cautiously.
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