Buy signal for 2 oversold cryptocurrencies this week 
Cryptocurrency Aug 3, 2024 Share
The cryptocurrency market has experienced significant volatility over the past week, with Bitcoin (BTC) plummeting below $61,000 and Ethereum (ETH) falling below $3,000.
Altcoins have followed a similar downward trajectory, driven by recession fears, disappointing economic data, and significant outflows from Bitcoin and Ethereum ETFs.
Amidst these fluctuations, several cryptocurrencies have entered oversold territories, presenting potential buying opportunities for investors and traders. The overall Relative Strength Index (RSI) supports this transition, with an average 24-hour RSI of 36.30, according to CoinGlass.
Picks for you
Solana or Cardano? We asked ChatGPT-4o which crypto is a better buy for 2024 3 hours ago Analyst identifies XRP’s indicator hinting ‘at impending explosive breakout’ 4 hours ago Ethereum selling spree 'almost over' with 80% ETH outflow drop 6 hours ago Bitcoin short-term targets hit as recession fears loom; Analysts see opportunity 6 hours ago
In this context, Finbold has identified two cryptocurrencies, Starknet (STRK) and Hedera (HBAR), to stand out with strong buy signals based on their RSI across multiple time frames and other technical indicators.
Starknet (STRK)
STRK is currently trading at $0.418, with a 24-hour RSI of 28.28, indicating a heavily oversold condition.
The 14-day RSI of 26.51 further confirms this, signaling a strong potential for a price reversal. The RSI values across various time frames, 43.31 for 15 minutes, 44.17 for one hour, 32.23 for four hours, 28.7 for 12 hours, 28.28 for 24 hours, and 36.12 for one week, consistently show oversold or near-oversold conditions, reinforcing the potential for a rebound.
Crypto Market RSI Heatmap, daily chart: STRK. Source: CoinGlass
The Commodity Channel Index (CCI) and Williams Percent Range (W%R) both indicate that STRK is significantly undervalued, suggesting it is primed for a rebound.
The Momentum indicator also points to a buy, showing that the selling pressure is weakening. With these indicators aligning to show that STRK is deeply oversold, there is a high likelihood of an upward correction.
For investors and traders looking to capitalize on market volatility, STRK presents an attractive opportunity due to its strong technical signals for a potential rebound.
Hedera (HBAR)
HBAR is trading at $0.059, with a 24-hour RSI of 29.69, highlighting its oversold status. The 14-day RSI value of 28.38 supports this view, indicating a potential buying opportunity.
The RSI values across various time frames, 37.5 for 15 minutes, 36.64 for one hour, 28.7 for four hours, 28.03 for 12 hours, 29.69 for 24 hours, and 36.22 for one week, consistently show oversold conditions, reinforcing the likelihood of a rebound.
Crypto Market RSI Heatmap, daily chart: HBAR. Source: CoinGlass
The Momentum indicator signals that the downward pressure is diminishing, suggesting that HBAR may be nearing the end of its current downtrend.
Although the Commodity Channel Index (CCI) and Average Directional Index (ADX) are neutral, the overall technical indicators favor a potential rebound.
HBAR’s deeply oversold condition, combined with these buy signals, suggests that it is well-positioned for a price recovery.
Despite the broader market downturn with major cryptocurrencies trading in the red, both STRK and HBAR stand out as buy opportunities due to their oversold conditions and strong technical signals indicating the potential for price rebounds.
However, it is essential to also take into account other technical indicators, market conditions, and fundamental analysis when evaluating potential trades.
Amid these positive outlooks, a cautious and well-rounded approach to investing is always recommended.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.