Sell signal for 2 overbought cryptocurrencies this week

The cryptocurrency market has started moving again after a low-volume week, with most digital assets trading in a consolidation range. In this context, Finbold looked for sell signals in overbought cryptocurrencies. 

Despite the overall consolidation, some projects have maintained a strong momentum, leading to an overbought status. If these projects face challenges or a trend shift, this could create a selling opportunity for the next few days.

Notably, the total crypto market cap evidences the recent surge, adding nearly $160 billion in value since January 23. It marks a 10.53% increase in cryptocurrency until February 8, by press time.

Crypto total market cap daily chart. Source: TradingView

Sui Network (SUI) is overbought

In particular, Finbold spotted an overbought Sui Network (SUI) at CoinGlass’s weekly Relative Strength Index (RSI) heatmap on February 8.

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The SUI token currently has the highest weekly RSI in the market, creating a relevant sell signal at these prices. As of writing, Sui is trading at $1.51, up 3.16% in seven days but with a 79.64 overbought RSI.

Moreover, it also shows weakness in all other time frames except for the daily RSI. This short-term weakness could suggest a trend reversal at any moment for the Sui Network digital asset.

Crypto market RSI heatmap, weekly SUI. Source: CoinGlass

Sell signal for Injective (INJ)

Another potentially overbought cryptocurrency is Injective (INJ). The token has a 72.25 weekly RSI, trading at $32.82 and up 1.44% by press time. Like SUI, Injective signals a trend reversal with its low time frame RSIs.

Interestingly, other cryptocurrencies have higher RSI points in the seven-day time frame. However, INJ has the highest divergence between its weekly status and the short-term indicators – all below the market’s average.

Crypto market RSI heatmap, weekly INJ. Source: CoinGlass

Understanding this extreme-strength indicator is vital for investors looking to sell signals.

On the other hand, having an overbought RSI does not guarantee a price crash or trend reversals. The cryptocurrency market is highly volatile, and projects usually respond aggressively to news and relevant events.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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