Nexo,Quant Show Overbought Signals,Traders Warned
1min read Nexo and Quant, two prominent cryptocurrencies, are currently displaying overbought conditions, as indicated by their Relative Strength Index (RSI) levels. This signals a potential correction in the near future, making them risky investments for traders this week.
Nexo, a crypto lending entity, has seen increased activity following its re-entry into the U.S. market. The move was attributed to a more favorable regulatory environment under the Donald Trump presidency. However, Nexo's exit from the U.S. in 2022 due to regulatory challenges and the FTX collapse has left a mark on its reputation. Currently trading at $1.27, nexo has seen a 1.60% increase over the past 24 hours. Its RSI values are concerning, with readings of 71.98 on the 24-hour chart, 69.31 on the 12-hour chart, and 58.26 on the 4-hour chart. An RSI above 70 generally indicates an overbought condition, suggesting an imminent downturn for Nexo.
Quant, a blockchain interoperability project, is also flashing warning signs for traders. Priced at $86.70, QNT has posted modest gains of 1.40% over the past 24 hours. However, its RSI readings are elevated, with figures at 70.99 on the 24-hour chart, 73.64 on the 12-hour, and 69.03 on the 4-hour. These levels, particularly the 12-hour RSI above 70, potentially signal a forthcoming price dip for Quant.
While the technical indicators suggest that these digital assets might crash, their next price trajectory heavily depends on broader market sentiment. If Bitcoin breaks past the $95,000 mark, there’s a good chance both NEXO and QNT will follow suit. However, the recent surge in Bitcoin's network activity does not necessarily translate to a bullish trend for all cryptocurrencies, especially those showing signs of being overbought.
In summary, traders should exercise caution when considering Nexo and Quant for trading activities this week. The high percentage of altcoins trading above their 50-day moving average indicates that many assets are overbought in the short term. This, combined with the elevated RSI levels and potential market volatility, suggests that traders should approach the market with a cautious mindset, focusing on risk management and potential reversals.
Ask Aime: "Is Nexo about to crash?"
