Strong momentum surrounds the cryptocurrency market and most projects are in the green on their weekly charts. Crypto expert Vinicius Barbosa says that in this positive scenario, crypto investors should stay away from overbought cryptocurrencies. In this context, the expert draws attention to 3 altcoin projects that have become very hot.
First in line is the booming meme coin Bonk (BONK)
Among the most overbought cryptocurrencies of the day is Bonk, Solana’s (SOL) self-declared first dog-themed coin. BONK’s 24-hour RSI value was 79.32 at the time of writing and 72.41 on the 4-hour time frame. Interestingly, this meme coin has a circulating supply of a whopping 60 trillion BONK. Therefore, CoinGlass indexes it as 1000BONK, which changed hands at $0.01185, up and down 3.79% on the day.
Daily Crypto Market RSI Heat Map – 1000BONK. Source: CoinGlassBONK has surged within Solana as its leading Ethereum (ETH) rival gains popularity. However, it is difficult for the altcoin project to sustain its purely speculative demand in the long term. Therefore, investors should wait for a pullback and be cautious.
The second alarming altcoin: Holo (HOT)
Holo is a platform built to host Holochain’s decentralized applications. However, the HOT token is not Holochain’s native accounting asset. An ERC-20 IOU token that will become redeemable after the native token launch. Therefore, investors need to be careful when buying and selling this version of IOU, which causes extra risks.
HOT was currently trading at $0.002119 as of press time. The altcoin is showing high overbought status on both daily and weekly time frames. The RSI value points to 85.85 within seven days and 77.05 within 24 hours. However, it is still in ‘strong’ momentum on the 4-hour time frame.
Daily Crypto Market RSI Heat Map – HOT. Source: CoinGlassThe last altcoin on the list: TraderJoe (JOE)
Meanwhile, TraderJoe’s native token JOE stands out as the last cryptocurrency pick to avoid trading next week. JOE has seen increased demand with the growth of Avalanche (AVAX) related to the DeFi ecosystem. TraderJoe is a decentralized exchange. It is also one of the most popular and capitalized protocols on Avalanche. The protocol particularly increased in the Total Value Locked (TVL) area, which is also reflected in the token performance. The altcoin was changing hands at $0.65 at press time, an increase of 13.4% in the last 24 hours.
However, it also stands out as one of the most overbought cryptocurrencies on a daily and weekly basis. JOE’s RSI value was recorded as 83.48 during the week and 79.47 during the day. Moreover, it is still increasing strongly in the last 4 hours.
Daily Crypto Market RSI Heat Map – JOE. Source: CoinGlassAll things considered, any of these three cryptocurrencies mentioned to avoid trading next week could still perform well in the volatile and unpredictable cryptocurrency market. Despite the issues we mentioned, it is also possible for altcoin prices to increase.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. As Kriptokoin.com, we recommend that you do your own research before investing.
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