Bitcoin $97,667.7 It is at $97,600 and the day is relatively quiet for altcoins because the volumes have weakened quite a bit. Let’s consider the situation of altcoins today in a broader context. Especially with the increasing interest in futures transactions, a significant portion of investors began to focus on short-term movements. Of course, this situation also causes liquidations worth billions of dollars.
What is RSI?
In 1978, technical analyst J. Welles Wilder Jr. Years later young when he developed RSI cryptocurrency Little did he know that it would become one of the best indicators for his investors. The abbreviation RSI, which stands for Relative Strength Index, is widely used in technical analysis to detect “overbought or sold assets.”
Although some investors do not take it seriously, besides its simple appearance, it helps to understand what is going on with the relevant asset. It is very guiding in charts over a wider time frame.
There are 2 important levels for the RSI. A value of 30 and below represents oversold, while a value of 70 and above is the opposite. RSI and price may show negative or positive divergence.
If the RSI is rising while the price is falling, this is a bullish signal. However, if we see the RSI falling while the price is rising, this indicates a decline. We said that RSI measures demand. Increasing demand during a decline means more investors are taking risks. On the contrary, if demand weakens while the price rises, there is a risk of further decline.
Which Altcoins are in Buy Level?
It can be useful to monitor the RSI status on weekly, daily and 4-hour periods to see the current status of over 100 cryptocurrencies. Below you see the RSI status of more than 100 cryptocurrencies in the weekly period. UXLINK is overtaken. HBAR, AAVE, ZEN like altcoins is at overbought level.
You need to pay attention to a few things here.
- The RSI may be at the overbought level, but this does not mean that there will be an immediate decline. XRP Coin For example, the expectation of an improved regulatory environment after Trump takes office has been keeping demand alive for a long time.
- Contrary to the first article, an altcoin that is in the oversold zone is not expected to rise immediately. For example, DOGS may perform poorly for a longer period of time because the hype in the TON Coin ecosystem has weakened.
- Altcoins such as DOGE, ENS, BNB are below the overbought zone and this means that there is room for the rise to accelerate with the revival of demand.
- For cryptocurrencies in the neutral zone, we can say that they are far from positive divergence and show delayed performance.
Above you can see the situation in the daily period. This reflects the shorter-term trend.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
