A strong momentum surrounds the cryptocurrency market, with most projects in a weekly green. In this positive scenario, crypto traders can leverage their results by avoiding overbought cryptocurrencies.
Therefore, looking at the Relative Strength Index (RSI) and other technical and fundamental analysis indicators offers valuable trading insights. For that reason, Finbold picked three cryptocurrencies to avoid next week, according to data from CoinGlass.
Notably, this week’s picks will mostly consider the RSI in the daily and weekly time frames. Resulting in the following cryptocurrencies to avoid trading: Bonk (BONK), Holo (HOT), and TraderJoe (JOE).
Avoid trading Bonk (BONK) next week
Among the most overbought cryptocurrencies of the day is Bonk, the self-proclaimed first dog-themed coin on Solana (SOL). BONK had a 24-hour RSI of 79.32 at the time of publication, with 72.41 in the 4-hour time frame.
Interestingly, this meme coin has a gigantic 60 trillion BONK circulating supply, which is standard for meme coins. For that reason, CoinGlass indexes it as 1000BONK, priced at $0.0123, up 18% in the day.
Bonk rose within Solana as the leading Ethereum (ETH) competitor gained popularity. However, its fully speculative demand might not be sustainable in the long term, and investors should expect a retrace.
Holo (HOT)
Holo is a platform built to host decentralized applications of the Holochain. However, the token HOT is not Holochain’s native accounting asset. It is an ERC-20 IOU token that will become redeemable after the native token launch.
Therefore, traders must be cautious while trading this IOU version, which incurs extra risks.
HOT is now trading at $0.002119 by press time, showing high overbought status in both the daily and weekly time frames. Its RSI points to 85.85 in seven days and 77.05 in 24 hours. Nevertheless, it is still in a ‘strong’ momentum at the 4-hour time frame.
TraderJoe (JOE)
Meanwhile, TraderJoe’s native token, JOE, features as the last pick of cryptocurrencies to avoid trading next week.
JOE has seen an increased demand with Avalanche’s (AVAX) DeFi ecosystem relevant growth. TraderJoe is a decentralized exchange and one of the most popular and capitalized protocols on Avalanche.
In particular, the protocol has surged in Total Value Locked (TVL), which was reflected in its token’s performance. JOE is changing hands by $0.5604 at the time of publication, up 6.78% in the last 24 hours.
However, it also features as one of the most overbought cryptocurrencies daily and weekly. JOE’s RSI records 83.48 in the week and 79.47 in the day, still growing strong in the last 4 hours.
All things considered, any of these three mentioned cryptocurrencies to avoid trading next week might still perform well in the volatile and unpredictable cryptocurrency market. Value is subjective, and speculation could drive prices, capitalization, and ranks upward despite the mentioned aspects.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
