Overbought Cryptocurrencies: Why Traders Should Avoid These 5 Tokens This Week

In the fast-paced world of cryptocurrency trading, technical analysis remains a cornerstone for risk management. One of the most critical tools in this arsenal is the Relative Strength Index (RSI), which helps identify overbought and oversold conditions. As of December 2025, several tokens-Polygon (POL), Render (RENDER), Zcash (ZEC), Dash (DASH), and Alpine (ALPINE)-exhibit concerning RSI levels across multiple timeframes, signaling potential short-term reversals. This article dissects their technical profiles to justify why traders should exercise caution.

1. Polygon (POL): A Classic Overbought Scenario

Polygon's 14-day RSI stands at 84.45, firmly in overbought territory. This level, above the 70 threshold, suggests immediate selling pressure and a high probability of a correction. While the broader Ethereum ecosystem remains bullish, POL's overbought condition indicates a temporary exhaustion of buying momentum. Traders should avoid long positions here, as a pullback to key support levels-such as the 50-day moving average-could trigger a sharper decline.

2. Render (RENDER): Bearish Weekly Momentum

Render's weekly RSI of 44.83 signals bearish momentum, despite the token not being technically overbought. This reading reflects a weakening trend in medium-term sentiment, with price action failing to reclaim critical resistance levels. While the 4-hour and daily RSI data is unavailable, the weekly chart's bearish divergence (lower highs in price vs. RSI) underscores a high-risk profile. Traders should avoid entering longs until a confirmed reversal above $5.50, with a stop-loss below $4.80 to mitigate downside risk.

3. Zcash (ZEC): Mixed Signals and Structural Weakness

Zcash's technical picture is a study in contrasts. The daily RSI (14) at suggests oversold conditions, while the weekly RSI of indicates balanced momentum. However, ZEC's breakdown below the $480 support level and the 38.2% Fibonacci retracement signals structural bearishness. The 4-hour RSI of further confirms a neutral-to-bearish bias. Traders should avoid longs until ZEC reclaims $520 with volume confirmation, as further declines toward $400 appear likely.

4. Dash (DASH): Neutral RSI, Strong Sell Bias

Dash's weekly RSI of 57.52 places it in neutral territory, but technical indicators like the RSI breakdown and bearish MACD divergence suggest a strong sell bias. The absence of overbought conditions does not negate the risk of a continuation in the downtrend, especially with DASH failing to hold above $180. Short-term traders should avoid long positions and instead consider shorting opportunities with a target of $150, using $170 as a dynamic stop-loss.

5. Alpine (ALPINE): Oversold but Not Safe

Alpine's weekly RSI (Fast) of places it near oversold territory, which might tempt traders to bet on a rebound. However, oversold conditions do not guarantee a reversal, especially in a broader bearish market. ALPINE's price remains trapped below its 200-day moving average, and the lack of institutional buying activity suggests a prolonged consolidation phase. Traders should avoid speculative longs until ALPINE breaks above $0.00015 with volume confirmation.

Strategic Takeaways for Traders

1. Avoid Overbought Tokens: Prioritize avoiding assets like POL and ZEC where RSI exceeds 70 or shows bearish divergences.
2. Use Multi-Timeframe Analysis: Weekly RSI trends (e.g., RENDER's 44.83) often predict medium-term direction better than daily or 4-hour charts.
3. Confirm with Volume and Structure: RSI alone is insufficient; look for volume confirmation and key support/resistance levels to validate signals.
4. Implement Stop-Losses: For tokens like DASH and ALPINE, use tight stop-loss orders to limit downside risk in volatile markets.