3 Cryptocurrencies to Avoid Trading Next Week
The cryptocurrency market is experiencing strong momentum, with most projects in the green on a weekly basis. In this positive scenario, cryptocurrency traders can take advantage of their results by avoiding overbought cryptocurrencies.
Therefore, looking at the Relative Strength Index (RSI) and other technical and fundamental analysis indicators can provide valuable trading insights. As a result, Finbold has chosen three cryptocurrencies to avoid next week, according to data from CoinGlass.
It is worth noting that this weekās selection will mainly consider the RSI on the daily and weekly timeframes. Causing the following cryptocurrencies to avoid trading: Bonk (BONK), Holo (HOT), and TraderJoe (JOE).
Bonk (BONK)
One of the most overbought cryptocurrencies today is Bonk, the self-proclaimed first dog-themed token on Solana (SOL). At the time of publication, BONKās 24-hour RSI is 79.32 and the 4-hour timeframe is 72.41.
Interestingly, this meme coin has a huge BONK circulation of 60 trillion, which is standard for meme coins. As such, CoinGlass indexes it as 1000BONK at $0.0123, up 18% on the day.
Bonkās rise in Solana comes as the leading Ethereum (ETH) competitor grows in popularity. However, its purely speculative demand may not be sustainable in the long term, and investors should expect a pullback.
running (hot)
Holo is a platform built for hosting Holochain decentralized applications. However, the token HOT is not Holochainās native accounting asset. It is an ERC-20 IOU token that will become redeemable after the native token is launched.
Therefore, traders must be cautious when trading this IOU version, which carries additional risks.
At press time, HOT is currently trading at $0.002119, showing highly overbought conditions on both the daily and weekly timeframes. Its 7-day RSI index is 85.85 and the 24-hour RSI index is 77.05. Nonetheless, it remains āstrongā on the 4-hour timeframe.
Trader Joe's (JOE)
Meanwhile, TraderJoeās native token JOE is the last crypto option to avoid trading next week.
With the associated growth of the Avalanche (AVAX) DeFi ecosystem, so has the demand for JOE.TraderJoe is a decentralized exchange and one of the most popular and capitalized protocols on Avalanche.
In particular, the protocolās total value locked (TVL) has surged, which is reflected in the performance of its token. At press time, JOE was changing hands at $0.5604, up 6.78% in the past 24 hours.
However, it is also one of the most overbought cryptocurrencies on a daily and weekly basis. JOE's RSI recorded 83.48 this week and 79.47 on the day, still growing strongly in the last 4 hours.
All things considered, any of the three mentioned cryptocurrencies to avoid trading next week may still perform well in the volatile and unpredictable cryptocurrency market. Value is subjective and notwithstanding the above aspects, speculation may drive price, capitalization and ranking upwards.
#BTC #joe