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Buy signal for the two most oversold cryptocurrencies today

Buy signal for the two most oversold cryptocurrencies today

Following this week’s cryptocurrency market crash, digital assets currently display bearish technical indicators like a weak relative strength index (RSI). However, two popular cryptocurrencies have a potential buy signal, with an extremely oversold status on May 1.

As reported by Finbold, long-position traders lost $400 million since April 30, as $250 billion in capitalization left the market. The crash impacted Bitcoin (BTC) and Ethereum (ETH) traders, mostly, but all cryptocurrencies suffered meaningful losses.

Previously, crypto traders registered $100 million in total liquidations within a 4-hour time frame, which started the major sell-off. As a result, the average RSI dropped to a weak status below 34 index points, suggesting an overall bearish momentum.

Conversely, while some traders panic sell, others may see a buy signal opportunity for cryptocurrencies with discount prices. In particular, Finbold identified Bitcoin Cash (BCH) and Dogecoin (DOGE) as the two most oversold cryptocurrencies in CoinGlass‘s 4-hour chart.

Bitcoin Cash (BCH): Most oversold crypto

First, Bitcoin Cash was the most oversold cryptocurrency at press time, with a 21.07 4-hour relative strength index. BCH holds a neutral 52.4 in the weekly time frame despite having a weak 24-hour RSI of 33.37.

As of this writing, the coin trades at $406.2, down 1.41% in the last four hours.

Crypto Market RSI Heatmap: BCH. Source: CoinGlass

Finbold previously reported two other buy signals for Bitcoin Cash due to high negative funding rates and short-squeeze liquidations. The renowned Bitcoin competitor stood out as an alternative as BTC fees reached record highs above $100 per transaction.

Buy signal for Dogecoin (DOGE)

Meanwhile, Dogecoin has the second-highest oversold signal among the top 100 cryptocurrencies in the 4-hour time frame. DOGE was trading at $0.12 at the time of publication, with a 23.9 RSI.

Like Bitcoin Cash, the leading meme coin has a neutral 50.03 and a weak 31.1 weekly and daily RSI, respectively.

Crypto Market RSI Heatmap: DOGE. Source: CoinGlass

Notably, having an oversold status does not guarantee short-term positive price action and is often seen as a bearish indicator. For now, cryptocurrency investors await a leading signal that could come from macroeconomic decisions from the Federal Reserve’s interest rate decision.

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

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