With the cryptocurrency market showing mild capital inflows in the short term, investors are watching several indicators to help anticipate price movements.
In this context, the relative strength index (RSI) is among the notable indicators being used to gauge market conditions and inform decisions. Notably, the RSI measures the speed and change of price movements on a scale from 0 to 100.
When RSI readings climb above 70, it typically signals that an asset is overbought, meaning it may have risen too quickly and could be due for a correction or pullback as sellers step in to take profits.
Now, for investors looking for assets to buy in the coming week, some tokens are flashing high RSI readings, signaling the need for caution.
Polygon (POL)
Starting with Polygon (POL), the token, priced at $0.169, has shown mixed performance in the immediate term, with a 5.8% decline in the past 24 hours. However, its RSI readings paint a clearer picture of the underlying momentum.
On the 15-minute timeframe, the RSI sits at 51.79, indicating neutral conditions in the very short term. The one-hour RSI is 47.12, still balanced, but the four-hour reading rises to 61.39, edging toward stronger buying pressure. The real concern emerges over longer periods, with the 12-hour RSI at 80.25 and the 24-hour RSI at 76.34.
These elevated levels above 70 suggest that POL has experienced sustained upward momentum that may not be sustainable, increasing the risk of a reversal.
Investors considering entry points should monitor for signs of cooling, as overbought conditions like these often precede periods of consolidation or downward adjustment.
Render (RENDER)
Similarly, Render (RENDER), trading at $2.615, has demonstrated stronger recent gains, up 13.99% over the past 24 hours, reflecting heightened interest in the token.
Its RSI values, however, raise red flags for those eyeing trades this week. The 15-minute RSI stands at 70.53, already crossing into overbought territory and hinting at short-term buying exhaustion.
This has intensified on the one-hour chart at 76.58, showing even stronger momentum. While the four-hour RSI dips slightly to 69.39, just below the threshold, it rebounds on the 12-hour timeframe to 73.33 and on the 24-hour to 75.97.
Such consistently high readings across multiple timeframes imply that RENDER’s price surge could be overextended, making it vulnerable to profit-taking and a potential dip.
Traders may benefit from waiting for the RSI to fall back toward more neutral levels, around 50, before committing capital.
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