The cryptocurrency market faced significant turbulence today as Bitcoin (BTC) suffered a dramatic flash crash, plunging from its all-time high of $103,000 to as low as $94,000 before stabilizing around $97,000.
This sharp decline triggered a wave of panic sell-offs, impacting major altcoins like Ethereum (ETH) and XRP, which mirrored Bitcoin’s downward trajectory. The resulting liquidation frenzy has pushed market-wide liquidations to a staggering $881 million, further intensifying bearish sentiment.
While the exact catalyst for this sell-off remains unclear, heightened volatility has spotlighted overbought conditions in several cryptocurrencies.
Picks for you
According to CoinGlass’s 12-hour relative strength index (RSI), heatmap, multiple assets have breached overbought thresholds, presenting opportunities for short-term corrections. ‘
With the average daily RSI currently at 70.36 and the 12-hour RSI at 65.55, the broader market shows signs of overheating, increasing the likelihood of retracements in select assets.
Against this backdrop, Finbold has identified two cryptocurrencies, Xai (XAI) and JasmyCoin (JASMY), that exhibit strong sell signals based on momentum indicators, suggesting they may be poised for imminent price corrections.
Xai (XAI)
XAI’s current RSI levels across multiple timeframes point to an emerging sell signal as overbought conditions dominate the higher timeframes.
The 12-hour RSI has surged to 71.59, while the 24-hour RSI climbs even higher to 74.1, both breaching the overbought threshold of 70. This indicates that buying momentum is reaching its peak, with a pullback or consolidation likely on the horizon.
Adding to this, a sharp 9.75% price increase over the last 12 hours suggests the asset may be overextended, inviting selling pressure as traders begin to secure profits.
While shorter timeframes, such as the 15-minute RSI at 56.88 and the one-hour RSI at 55.59, remain in neutral territory, they fail to show the strong upward momentum needed to sustain further gains.
With the broader market’s average 12-hour RSI standing at 65.55, which is on the verge of overbought levels, XAI’s upward trend could face resistance, signaling a key moment for traders to take profits before a potential correction sets in.
JasmyCoin (JASMY)
JASMY also presents strong sell signals, with RSI levels across multiple timeframes firmly in overbought territory.
The 12-hour RSI stands at 75.71, the 24-hour RSI at 76.77, and the one-week RSI at 75.55, all exceeding the overbought threshold of 70. These readings indicate that JASMY’s recent bullish momentum is unsustainable and likely to reverse soon.
Adding to this bearish outlook, JASMY has seen an extraordinary 73.2% price surge over the past 12 hours, a sharp spike that typically triggers profit-taking.
Shorter timeframes, such as the 15-minute RSI of 45.61 and one-hour RSI of 50.41, remain neutral, signaling that the upward momentum is not strong enough to sustain further gains.
With the broader market’s 12-hour RSI average at 65.55, the potential for selling pressure across the market increases. These factors make JASMY a prime candidate for a short-term correction, presenting traders with an opportunity to secure gains.
However, it is important to note that an overbought RSI is not a definitive predictor of an immediate downturn, as such conditions can persist in prolonged bullish markets.
Therefore, while caution is warranted, traders should also consider broader market trends and additional indicators to make informed decisions. In the current backdrop, closely monitoring market dynamics will be crucial for navigating the heightened volatility.
Featured image via Shutterstock
