As the weekend approaches, investors eyeing the cryptocurrency markets may want to consider a few key indicators to guide their trading decisions.
One of the most important is the Relative Strength Index (RSI), a momentum gauge that measures recent gains and losses on a 0–100 scale.
Currently, some assets are flashing warning signals, as RSI readings above 70 often indicate overbought conditions and a higher risk of a pullback.
With this in mind, Finbold has identified two cryptocurrencies in the overbought zone that traders may want to avoid this weekend.
PAX Gold (PAXG)
PAX Gold (PAXG) is a cryptocurrency backed by physical gold, designed to give investors exposure to the precious metal without the need for storage.
On the surface, its performance appears stable, with the token trading at $3,558.12, almost unchanged over the past 24 hours. However, beneath this calm surface lies a concerning signal.
The RSI reveals a different picture: from a neutral 49.06 on the 15-minute chart, momentum has steadily climbed to 76.21 on the 24-hour timeframe.
PAXG price and RSI. Source: CoinglassThis rise suggests that while price action has been flat, the asset is quietly slipping into overbought territory.
Redstone (RED)
Redstone (RED), a crypto project focused on decentralized finance and scalable blockchain data solutions, has seen explosive growth.
The token is priced at $0.6821, surging 65.44% in the last 24 hours, making it one of the strongest performers in the market.
But the rally is showing signs of exhaustion. RSI readings are stretched, 64.89 (15-minute), 77.42 (12-hour), and 75.92 (24-hour).
RED price and RSI. Source: CoinglassCoupled with a 3.44% hourly decline, the data suggests traders are beginning to take profits. With momentum overheated, the token faces an increased risk of a sharp retracement in the near term.
Featured image via Shutterstock
Source: https://finbold.com/avoid-trading-these-2-cryptocurrencies-this-weekend/
