Bitcoin (BTC) has been stuck in a certain price range for the past 3 months, but there has been a rise in the market following the recent Ethereum (ETH) ETF approval news. While the future of the cryptocurrency market remains uncertain, some altcoins have been identified as overbought. According to CoinGlass data, the 24-hour relative strength index (RSI) heat map showed signs of overbuying in certain altcoins, particularly on May 29. Let’s take a closer look at two of them.
Bounce Token (AUCTION) Latest Status
The first altcoin we will examine is Bounce Token (AUCTION). The 24-hour RSI indicator for AUCTION has shifted from an oversold position to an overbought situation. According to CoinGlass’s heat data, the token is currently trading at $24.54, showing a 35% increase in the last 24 hours.
On the hourly timeframe, AUCTION’s RSI value is 91.76, indicating a significant level of overbuying in a short period. The 4-hour, 12-hour, and 24-hour RSI values for AUCTION are 89.14, 82.94, and 75.99, respectively. However, on the weekly timeframe, Bounce Token shows weak momentum at 35.62 compared to short-term continuity.
ConstitutionDAO (PEOPLE) Comments
Another cryptocurrency showing overbought signals is ConstitutionDAO token PEOPLE. Unlike the overall market, PEOPLE has been experiencing positive price movements that have attracted investors’ attention. The weekly RSI value for PEOPLE has reached an overbought state after this process. However, things seemed to have turned around recently.
Although the PEOPLE token saw a 1.81% increase during the day, the price fell to $0.07964 following a 12% drop. Indicators had already pointed to the possibility of this situation, and it ultimately occurred.
It is important to note that while the overbought RSI indicator on the PEOPLE side brought a correction, there is no guarantee of a correction in cryptocurrencies. It is crucial for investors to understand that these indicator changes usually occur after periods of bullish strength and are commonly seen during ongoing bull market periods.
Please note that the information provided in this article is not investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research. You can stay updated on our latest news through Telegram, Facebook, Twitter, and Coinmarketcap.
