The broader crypto market has entered a period of consolidation, with many assets trading sideways after weeks of volatility.
While some coins are cooling off, a few are showing signs of being overbought, raising the risk of sharp reversals if momentum stalls.
To this end, the following two cryptocurrencies are firmly in the overbought zone, suggesting that traders should approach with caution.
Zcash (ZEC)
Zcash (ZEC), the privacy-focused cryptocurrency, has been on a tear, climbing more than 17% over the past 24 hours to trade near $65.95 as of press time.
While this rally has attracted significant investor interest, ZEC’s technical picture suggests traders may be getting ahead of themselves.
Its RSI levels are hovering in the mid-to-high 70s across multiple timeframes, including 78.18 on the four-hour chart.
Such readings signal extreme overbought conditions, often a precursor to price pullbacks once buying pressure fades.
Alpine (ALPINE)
Meanwhile, Alpine (ALPINE) tells a different but equally cautionary story. Despite shedding nearly 7% in the last 24 hours and dipping to $5.37 as of press time, the token remains technically overheated.
Alpine RSI levels. Source: CoinglassSpecifically, ALPINE’s values still point to overbought territory, with the 24-hour RSI at 77.25 and the four-hour value above 73.
This suggests that even as the price slips, further downside may be ahead as momentum traders continue to unwind positions.
Ultimately, the momentum of these assets will depend on the broader market’s trajectory, particularly how Bitcoin (BTC) performs.
Notably, the maiden cryptocurrency has seen reduced activity this past week, a key level that continues to weigh on overall sentiment.
Featured image via Shutterstock
Source: https://finbold.com/2-overbought-cryptocurrencies-to-avoid-this-week/
