The cryptocurrency market hits an all-time high, reaching a value of US $ 1.65 trillion for the first time since May last year. This unprecedented surge, spearheaded by Bitcoin and various altcoins, has pushed some of the cryptocurrencies near or potentially past overbought levels. These are the three altcoins that investors should watch with caution.
Overbought Altcoins in the Spotlight
Since the beginning of this year, prices have increased by 115 % from January’s levels to ones last seen in May 202. Although Bitcoin is almost single-handedly responsible for the rising tide, this fast ascent has carried some altcoins into overbought territory (in Coinglass’s RSI heat map below).
Key Altcoins Showing Overbought Signals
For instance, three such altcoins demonstrating overbought conditions are Oasis Network (ROSE), BakeryToken (BAKE) and Injective Coin. In the last 24 hours, ROSE jumped 22.46 %, now trading at $0.1279. RSI readings for various timeframes suggest that it is overbought, with the weekly RSI hitting a high of 95.56; there may be room enough here for correction.
BAKE – while not as overbought ROSE is, also shows elevated RSI levels: 73.38 in a 4-hour period; 76.41 in one day and 82.19 for the past seven days (all values are percentages of shares). INJ, the token of Injective is also showing an overbought warning with a weekly RSI above 97. But its 4-hour RSI is neutral at 52.3, the signals about its near future are split.
Market Dynamics and Risks
Following significant uptrends, corrections are common. But sometimes altcoins keep on running as indicated by overbought indicators (such ones increase the risks for investors). This state of affairs reinforces the need for caution in a rapidly evolving crypto market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.