As the cryptocurrency market builds momentum toward new highs, several digital assets are flashing warning signs that warrant a cautious approach.

With increased capital inflows, specific cryptocurrencies have consistently entered the overbought zone, with the Relative Strength Index (RSI) readings climbing above the 70 threshold. 

Such levels suggest buying pressure may be overextended, often leading to consolidation or a reversal as traders take profits.

Below are two coins currently in overbought territory that warrant attention heading into the new week.

Lido DAO (LDO)

Lido DAO (LDO) plays a key role in one of Ethereum’s largest liquid staking protocols, allowing users to stake cryptocurrency while retaining liquidity. 

The token has surged 15.6% in the past 24 hours to $1.371. Amid this positive momentum, LDO’s RSI readings are elevated across time frames, hitting 79.41 on the four-hour chart and remaining above 72 on the daily, both well past the overbought threshold. 

Much of the momentum around LDO has been driven by increased whale accumulation of the asset.

Ethena (ENA)

Ethena (ENA), which powers a synthetic dollar protocol built on Ethereum, is also trading in the overbought zone. The token has recently enjoyed strong bullish momentum, rising 5.46% in the past day to $0.7749.

Its RSI stands at 73.75 on the four-hour chart and 73.41 on the daily, both above the overbought threshold.

Notably, crypto trading analyst Ali Martinez noted that Ethena has broken out of a bullish flag pattern, signaling a potential continuation of its July rally. The possible breakout points to upside targets of $1 and $1.50 based on Fibonacci extensions, provided momentum holds above the $0.70 support.

In summary, while overbought conditions do not guarantee an immediate downturn, they often signal that the pace of gains may be unsustainable.

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