Sell signal for 2 overbought cryptocurrencies in April

After weeks of huge volatility, some crypto assets are left with significant imbalances that could cause drastic changes. In particular, Finbold spotted two possibly overbought cryptocurrencies in what might be a sell signal for April.

The overbought signal is usually identified through a technical indicator called the Relative Strength Index (RSI). Essentially, it measures the momentum of an underlying asset based on past price action, considering multiple factors.

A strong momentum, above 60 index points is usually positive and indicates an uptrend or a bull market. However, going for extreme strength can often sign the cryptocurrency is due to a correction or trend reversal.

Crypto market 24-hour RSI heatmap: RSR. Source: CoinGlass

This status threatens a massive correction for the supposedly overbought ERC-20 token, which has one of the highest weekly Relative Strength Indexes as of today.

Sell signal for Dusk (DUSK)

Second, Dusk (DUSK) has a similar weekly and daily RSI to the Reserve Rights token. With a 76.35 and 88.16 overbought status, respectively, traders should be aware of a sell signal for DUSK.

The token belongs to a layer-1 blockchain founded in 2018, focusing on real-world assets (RWA) compliance for institutional investors.

Interestingly, DUSK rose over 9.82% in the last 24 hours, coming from a few weeks of positive price action. BlackRock’s recent move toward a tokenization fund and RWA enterprises have fueled the demand for this project, which could now face a short-term retracement.

However, positive developments in the institutional landscape would favor further growth for Dusk, invalidating this technical analysis.

Crypto market 24-hour DUSK heatmap: RSR. Source: CoinGlass

All in all, RSR’s and DUSK’s RSI data suggest a sell signal for these two overbought cryptocurrencies in April. Yet, fundamental aspects could influence an uptrend continuation and investors must trade cautiously in both scenarios.

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