Cryptocurrencies have registered massive gains in the past seven days, most of which have reached an overbought status. However, the cryptocurrency market has its laggards, now recovering from weak price action and gaining momentum.
Investors can benefit from technical analysis buy signals. In particular, from indicators suggesting trend reversals for cryptocurrencies that are picking up steam.
Therefore, Finbold turned to CoinGlass’s Relative Strength Index (RSI) heatmap on March 3, looking for insights. From there, we spotted two recovering cryptocurrencies with solid fundamentals that are gaining momentum in the weekly time frame.
Crypto market RSI heatmap: Monero (XMR). Source: CoinGlass
THORChain (RUNE)
THORChain (RUNE) is another cryptocurrency with solid fundamentals and significant recovery, but it is still lagging behind the market.
Interestingly, RUNE is now above the neutral-50 weekly RSI, with shy gains of nearly 4% in this time frame. Trading at $5.61, THORChain’s daily RSI also shows a growing momentum that traders could interpret as a buy signal.
The project is a cross-chain and decentralized exchange protocol built to facilitate swaps between different blockchains. On that note, an overall bull market could drastically increase the demand for its solution and RUNE.
Crypto market RSI heatmap: THORChain (RUNE). Source: CoinGlass
On the other hand, the buy signal could be invalidated if these two recovering cryptocurrencies fail to embrace the momentum. The crypto market’s volatility and fast-moving characteristics could backfire if cryptocurrencies enter a correction phase.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
