2 overbought cryptocurrencies to avoid trading this week
Main Idea
Several cryptocurrencies, including Lido DAO (LDO) and Ethena (ENA), have entered overbought zones with high RSI readings, indicating potential profit-taking opportunities amid strong bullish momentum.
Key Points
1. Lido DAO (LDO) surged 15.6% in 24 hours to $1.371, with RSI readings at 79.41 (4-hour chart) and above 72 (daily chart), signaling overbought conditions.
2. Ethena (ENA) rose 5.46% to $0.7749, with RSI at 73.75 (4-hour chart) and 73.41 (daily chart), also indicating overbought levels.
3. Analyst Ali Martinez noted Ethena's breakout, suggesting potential upside targets of $1 and $1.50 if momentum stays above $0.70 support.
4. Overbought conditions suggest the current pace of gains may be unsustainable, hinting at possible profit-taking.
Description
As the cryptocurrency market builds momentum toward new highs, several digital assets are flashing warning signs that warrant a cautious approach. With increased capital inflows, specific cryptocurrencies have consistently entered the overbought zone, with the Relative Strength Index ( RSI ) readings climbing above the 70 threshold. Such levels suggest buying pressure may be overextended, often leading to consolidation or a reversal as traders take profits. Below are two coins currently in overb...
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