In the past few days, the cryptocurrency market has seen Bitcoin (BTC) reaching its all-time high and meme coins in the spotlight as the week’s top performers. The euphoria dominated the space, and some cryptocurrencies could now be overbought.
Some other projects lost momentum as Bitcoin pivots for a price correction after facing the historical resistance at $69,000.
In this context, Finbold turned to CoinGlass and gathered data from its Relative Strength Index (RSI) heatmap. Notably, dozens of cryptocurrencies currently register an overbought status. Two now show a potential sell signal in the expectation of a short-term retracement.
Picks for you
eCash (XEC) could be overbought
In particular, eCash (XEC) has the highest daily and weekly RSIs among other cryptocurrencies. According to CoinGlass’s data, XEC is overbought in both time frames with 89.36 and 79.27 index points, respectively.
Interestingly, eCash is a direct fork from Bitcoin. It is up 53.57% in the last seven days to $0.00006892, following BTC’s leadership. A retracement is possible if Bitcoin continues its expected correction, which could go as low as $50,000.
It is worth mentioning that eCash is valued at a $1.34 billion market cap at its current prices. Thus, it has 19.65 trillion XEC as its circulating supply.
Sell signal to Dent (DENT)
Second, there is Dent (DENT), a low-cap with a $220 million market value also displaying an overbought status. DENT has a daily RSI of 75.51 and a weekly RSI of 78.32, threatening a sell-off if the momentum weakens.
Essentially, it is an ERC-20 token running on Ethereum (ETH), built for a digital mobile operator startup. DENT trades at $0.002243 by press time, with weekly gains superior to 12%.
On the other hand, having an overbought RSI does not guarantee a price crash or trend reversals. The cryptocurrency market is highly volatile, and projects usually respond aggressively to news and relevant events – highly influenced by whale activities.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
