The cryptocurrency market was shaken by Bitcoin (BTC)’s sharp decline from record highs to $94,000. The price then recovered. BTC is currently trading around $100,000. This sudden surge led to similar volatility in major altcoins such as Ethereum (ETH) and XRP. While liquidations in the market exceeded $881 million, this situation increased the selling pressure and worried investors. The exact reason for this decline is unknown. However, analysts state that many crypto assets have reached overbought levels. Here are 2 altcoin project that have reached overcurrent levels and are expected to see major corrections…
First Altcoin on the List: Xai (XAI): Overbought Conditions Signal Correction
XAI has made significant gains in recent hours but is showing overbought signals . The asset’s RSI levels have risen to 71.59 on the 12-hour time frame and 74.1 on the 24-hour time frame. These levels suggest that buying momentum has peaked and a price correction could occur soon.
Additionally, XAI has recorded a 9.75 percent price increase in the last 12 hours. However, it raises concerns of overextension. While the RSI readings on shorter timeframes remain in neutral territory at 56.88 for the 15-minute and 55.59 for the 1-hour, the lack of upward momentum is noticeable. The market’s 12-hour average RSI is around 65.55. Traders will consider developing profit-taking strategies against this potential pullback.
JasmyCoin (JASMY): Strong Candidate for Short-Term Correction
JASMY has seen phenomenal growth, with its price rising 73.2 percent in just 12 hours. However, RSI levels are in the overbought territory on all major timeframes. The 12-hour RSI is trading at 75.71, the 24-hour RSI is trading at 76.77, and the weekly RSI is trading at 75.55. These levels also suggest that the asset’s bullish momentum is not sustainable.
However, on the shorter timeframes, the RSI readings are neutral at 45.61 for the 15-minute and 50.41 for the 1-hour. This indicates that it does not have enough strength to support further upward movement. Considering that the market’s 12-hour RSI average is around 65.55, selling pressure will increase. Thus, this situation provides an opportunity for traders to take profits.
Strategies Against Altcoin Volatility
According to CoinGlass data, the 12-hour relative strength index (RSI) has crossed critical levels for many assets. This is a sign of short-term corrections. While overbought RSI levels indicate potential corrections, this does not mean that prices will fall immediately. In long-term bullish markets, RSI levels will remain elevated for a long time.
As we reported at Kriptokoin.com , traders should closely monitor market dynamics against these fluctuations and use additional indicators to make more informed decisions.
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