Buy signal for 2 strong cryptocurrencies this week
The cryptocurrency market has experienced a recent retracement, resulting in a loss of over $250 billion in total capitalization since March 14. However, this movement has created potential entry points for cryptocurrencies with strong long-term momentum, which can be seen as a buy signal.
Despite the recent price correction, the market overall remains strong, as expected in bull rallies. As of March 17, the weekly Relative Strength Index (RSI) is averaging at 60.37, indicating a “Strong” zone. This is an important technical indicator suggesting that most cryptocurrencies should continue to perform well in larger time frames.
To identify a buy signal for this week, we have analyzed cryptocurrencies with a neutral RSI in the daily time frame, but with a strong position above the weekly average. Essentially, we are looking for digital assets that have undergone a sharp short-term correction while still demonstrating long-term strength.
One strong buy signal is Cardano (ADA), a solid layer-1 blockchain project that recently experienced a significant correction. ADA lost 7.63% of its value in the last 24 hours, causing its daily RSI to fall below neutral-50. However, Cardano is still holding strong above the average weekly RSI for all cryptocurrencies. Therefore, ADA could be a potentially good buy at $0.67, assuming the market continues to grow and Cardano fundamentals remain positive.
Another cryptocurrency showing strength as a buy signal is Polkadot (DOT), which is in a similar situation to Cardano regarding its RSI. DOT has also seen a price correction in recent days, bringing its daily RSI to the edge of neutrality at 51.95. In the last 24 hours, DOT lost 6.4% but is expected to regain short-term strength under favorable conditions. Polkadot still maintains a strong weekly Relative Strength Index of 67.23, indicating potential long-term continuation.
It is worth noting that there are other cryptocurrencies in similar situations as ADA and DOT. Savvy investors should look for solid fundamentals, a strong long-term perspective, and relevant short-term corrections to identify good buy signals in the market. However, it is crucial to remember that cryptocurrencies are highly volatile and unpredictable assets, and there are no guarantees of positive investment returns. Therefore, exercising caution is essential to avoid significant losses.
Disclaimer: The information provided in this text should not be considered as investment advice. Investing in cryptocurrencies is speculative, and there is a risk of losing your capital.