The cryptocurrency market has crashed in the last few days. This fear brought a potential downtrend and buying opportunities at the same time. However, the two altcoins remain overbought on the daily Relative Strength Index (RSI). According to crypto analyst Vinicius Barbosa, this is something that investors should see as a sell signal.

CoinGlass data gives sell signal for 2 altcoins!

Cryptocoin.comAs you’ve been following on ‘The Market’, the market has lost significant altitude this week. However, this decline was not without its challengers. Interestingly, most cryptocurrencies went from strong or overbought to neutral or weak RSI in just a few days. This happened amid bearish technical indicators such as price action, loss of support levels and declining exchange volume.

Crypto market daily RSI heatmap. Source: CoinGlass

Still, some assets sailed against the wind, posting meaningful gains. Moreover, these cryptocurrencies maintained a high Relative Strength Index. CoinGlass’ momentum indicator points to an overbought condition for 2 altcoins. This suggests that cryptocurrencies will likely pullback at some point.

Sell signal for Jito (JTO)

Jito, in particular, has been overbought on four different timeframes following a 17.64% gain in the last 24 hours. The token is currently trading at $5.24. All short-term price charts show an RSI above 70. Additionally, the sell signal confirms itself with a neutral long-term momentum according to JTO’s weekly RSI at 54.13. This points to a short-term pump that is not sustainable. It also suggests that the cryptocurrency lacks momentum for continuation.

Crypto market daily RSI heatmap, JTO. Source: CoinGlass

Bella Protocol (BEL) signals a sale

Low-volume Bella Protocol is another altcoin with a potential sell signal at these prices. Notably, most of BEL’s RSI timeframes indicate the presence of overbought, with three of them above the 80 mark. The token’s daily Relative Strength Index is above Jito’s at 76.32, indicating a possible trend reversal. At the time of writing, the altcoin was trading at $1.44. Moreover, the token is up 43.75% in the last 24 hours. Hence, investors may soon opt for a profit realization strategy considering the expected volatility of a cryptocurrency with a market cap of less than $100 million.

Crypto market daily RSI heatmap, BEL. Source: CoinGlass

However, having an overbought RSI condition does not guarantee a price drop in the days ahead. Understanding this extreme strength indicator is vital for traders looking for sell signals. Cryptocurrencies are extremely volatile assets. Therefore, it’s possible for things to change in the blink of an eye.

The views and forecasts in the article are those of the analyst and are not investment advice. Cryptocoin.com we strongly recommend that you do your own research before investing.