Buy signal for 2 oversold cryptocurrencies this weekend 
Cryptocurrency Sep 6, 2024 Share
The cryptocurrency market continues to crash as traders and investors wonder when the digital assets will reach the bottom. In such an unpredictable market, players can look for technical indicators that assist in spotting potentially oversold cryptocurrencies to buy.
One of these popular indicators is the Relative Strength Index (RSI), which measures an asset’s momentum based on its activity. The RSI considers a cryptocurrency’s average gains and losses within a 14 trading period.
In particular, on September 6, Finbold turned to the 4-hour RSI data from CoinGlass, seeking potentially oversold buying opportunities. As of this writing, this period’s average relative strength index was at 41.23, indicating a neutral to weak momentum.
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Interestingly, the index considers each cryptocurrency’s average gains and losses over the last two and a half days for the 4-hour time frame, being ideal for spotting oversold cryptocurrencies for the upcoming weekend.
Comos (ATOM) most oversold cryptocurrency this weekend
First, Cosmos (ATOM) appears as the most oversold cryptocurrency in the last 56 hours, scoring 25.37 index points. ATOM currently trades at $3.847, down 1.54% in the last four hours.
Cosmos native token also shows oversold values below a 30 RSI at the 12-hour, daily, and weekly time frames. Therefore, this indicator suggests ATOM could be a potentially good “buy” in the following days, betting on a reversal.
Cryptocurrency Market RSI Heatmap – Oversold Cosmos (ATOM). Source: CoinGlass
Moreover, the sentiment is mostly negative on social platforms, mirroring the charts. On that note, Caleb Franzen, crypto analyst, believes Cosmos could have one of the worst charts in the whole market.
Cosmos $ATOM might just be the worst chart in all of crypto.
It's trading below the pre-COVID highs and is currently at the lowest levels since September 2020…. yes, four years ago!
All of the gains from Oct.'23 – Mar.'24 have been erased, and then some.
Brutal chain. pic.twitter.com/6Ox0r8HLyz
— Caleb Franzen (@CalebFranzen) September 5, 2024
Meanwhile, Jonathan Carter agrees with the downtrend but is optimistic about a bullish reversal if ATOM manages to bounce from its support zone, targeting up to $8.85 per token.
#ATOM
Cosmos continue falling within a falling wedge pattern😕
But now, price may turn bullish if it bounce from the support zone and breaks above the pattern resistance📈
Possible targets at: $5.40, $6.20, $7.25, and $8.85🎯 pic.twitter.com/YjemMQLB6A
— Jonathan Carter (@JohncyCrypto) September 2, 2024
Buy signal for MultiversX (EGLD)
MultiversX (EGLD) is the second oversold cryptocurrency after a poor price action in the last few days. Still, as previously reported by Finbold from multiple sources and experts, the chain’s solid fundamentals play as a buy signal.
The native token eGold is trading at $24.49 by press time, down 1.13% in the last four hours. Notably, its 4-hour RSI is just slightly oversold, marking 28.16 points, while higher time frames show a weak momentum.
Cryptocurrency Market RSI Heatmap – Oversold Cosmos (ATOM). Source: CoinGlass
MultiversX, however, was called the “Holy Grail of crypto” by Justin Bons, thanks to its pioneering full sharding implementation. Additionally, Lluciano_BTC said EGLD is a cryptocurrency to “keep your eyes on” for when Bitcoin (BTC) starts moving.
This recent drop followed announcements of the MultiversX team related to the postponement of its global event, the xDay. Yet, the team announced a series of satellite xDay meetups throughout the year until the xDay Global in April 2025.
GRM Web3‘s podcaster host commented on this change’s positive and negative aspects.
“At first glance, I’m extremely disappointed, as I’ve been looking forward to this annual event. But upon reflection, I think this is the best decision MultiversX could have made: postponing xDay 2024 and merging it with xDay 2025 to ensure the impact matches the resources at stake.”
MultiversX postpones xDay 2024, scheduled for October 30-31 in Seoul, to April 2025.
The event has been renamed xDay Global and will bring together more participants than just @MultiversX (Web3, finance, AI, spatial computing, etc.).
@ is launching xDay Satellites: recurring,… pic.twitter.com/vGk0E5jA3p
— GRM (@GRM_Web3) September 5, 2024
In closing, ATOM and EGLD suffer social pressure from a primarily negative sentiment as the entire cryptocurrency market crashes. This, reflected in their potentially oversold price, could create a buying opportunity for investors who believe in the fundamentals.
Nevertheless, the relative strength index is not a conclusive indicator and must be taken cautiously. Even oversold cryptocurrencies can continue to crash if the sentiment does not change.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.