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Sell signal for 2 overbought cryptocurrencies this week

Sell signal for 2 overbought cryptocurrencies this week

The cryptocurrency market crashed in the past few days, bringing fear, a potential downtrend, but also buying opportunities. However, two cryptocurrencies remain overbought in their daily Relative Strength Index (RSI), which investors could see as a sell signal.

Interestingly, most cryptocurrencies drastically moved from a strong or overbought position to a neutral or weak RSI in just a few days. This happened amid bearish technical indicators such as price action, lost support levels, and diminishing exchange volume.

Crypto market daily RSI heatmap, JTO. Source: CoinGlass

Yet, some assets sailed against the wind, accruing meaningful gains and maintaining a high Relative Strength Index. Finbold retrieved this sell signal from CoinGlass’s momentum indicator, considering overbought cryptocurrencies are likely to retrace at some point.

Overbought Jito (JTO)

In particular, Jito (JTO) is overbought in four different time frames, after 17.64% gains in the last 24 hours. The token is trading at $5.24 and all short-term charts show an RSI superior to 70.

Additionally, the sell signal validates itself with a neutral long-term momentum according to JTO’s weekly RSI at 54.13. This suggests a non-sustainable short-term pump, while the cryptocurrency lacks momentum for continuation.

Crypto market daily RSI heatmap, JTO. Source: CoinGlass

Sell signal to Bella Protocol (BEL)

The low-cap Bella Protocol (BEL) is another highly overbought cryptocurrency with a potential sell signal at these prices. Notably, BEL has most of its RSI time frames hinting at an overbought asset, with three above the 80 mark.

The token’s daily Relative Strength Index marks 76.32, which is above Jito’s and signals a possible trend reversal.

As of writing, Bella Protocol trades at $1.44 and is up 43.75% in the last 24 hours. Thus, traders could soon opt for a profit realization strategy, considering the expected volatility of a sub-$100 million market cap cryptocurrency.

Crypto market daily RSI heatmap, BEL. Source: CoinGlass

Nevertheless, having an overbought RSI status does not guarantee a price crash in the following days. Understanding this extreme-strength indicator is vital for investors looking to sell signals. Cryptocurrencies are highly volatile assets, and everything can change in the blink of an eye.

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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