Weekly Cryptocurrency Market Analysis: Altcoins Continue Their Uptrend As They Approach The Overbought Zone
The top altcoins maintained their upward momentum this week, reaching previous highs.
The fact that cryptocurrencies are trading in overbought areas of the market presents a difficulty. However, an overbought condition cannot last in a market that is in a strong trend. Each of these cryptocurrencies will be examined.
Threshold (T) has risen above the $0.020 support and is currently in an uptrend. The price of the cryptocurrency rose to a high of $0.0633 before falling back to the previous high of $0.05. The resistance at $0.050 has slowed down the upward movement. At $0.050 level, the market is reportedly in the overbought zone. If the current resistance is overcome, the altcoin will go even higher. It is expected to reach the previous high of $0.09 again. The daily stochastic is at 80, which means that the cryptocurrency asset is in a bearish momentum. The altcoin that is the best performing cryptocurrency has the characteristics listed below.
Current price: $0.04978
Market capitalization: $497,278,011
Trading volume: $466,569,120
7-day gain/loss: 133.85%
Aptos (APT) price is rising. The price of the altcoin is experiencing a series of higher highs and higher lows. The altcoin has been trapped near the bottom of the chart since it fell as low as $3.46. After rising above the 21-day SMA line on January 4, APT began to recover. The altcoin reached an all-time high of $8.83. APT continued to rise on January 20, reaching a high of $19.47. The altcoin is now at a point where the market is overbought. It is unlikely that the cryptocurrency will continue to rise. According to the Relative Strength Index for period 14, Aptos is currently at level 90. It is the second best performing cryptocurrency and has the following characteristics:
Current price: $19.25
Market capitalization: $18.754.535.320
Trading volume: $2,771,517,838
7-day gain/loss: 101.31%
The price of Optimism (OP), which reached a high of $1.89, has continued to rise. The historical price of $2.18 on August 3, 2022 has been surpassed. OP has reached a high of $2.57 today. The current upswing has broken through resistance at $2.18 and reached a new high. At $2.57, the cryptocurrency asset is overbought. At its recent high, the altcoin is experiencing rejection. If the price declines and breaks below the bullish trend line, the uptrend could come to an end. If it declines and bounces above the trend line or moving average lines, the uptrend will resume. As the daily stochastic of OP is above the level of 80, the altcoin has entered the overbought zone. The third best cryptocurrency is known as OP. It has these characteristics:
Current price: $18.89
Market capitalization: $18.754.535.320
Trading volume: $2,811,989,299
7-day gain/loss: 39.54%
As Fantom (FTM) has reached a high of $0.41, it is in an uptrend. Although it has reached the overbought zone, the upward movement continues. The altcoin reached the overbought zone on January 14 at $0.35. It returned to the low of $0.29 before rising to the recent high of $0.41. A candlestick retracing the January 14 uptrend tested the 61.8% Fibonacci retracement level. According to the retracement, FTM will rise to the 1.618 Fibonacci extension level or $0.45. The Relative Strength Index of the cryptocurrency for the period 14 is 73. The altcoin is overbought and can go down. It has the following characteristics and is the fourth best performing cryptocurrency:
Current price: $0.4093
Market capitalization: $1,299,360,315
Trading volume: $318,304,480
7-day gain/loss: 28.94%
The value of ApeCoin (APE) is rising and recently reached a high of $6.41. At the moment, prices are at the highest level since September 21, 2022. Despite the overbought condition, the current uptrend will most likely continue to the upside. A retraced candlestick of the January 14 uptrend tested the 50% Fibonacci retracement level. APE is expected to rise to the 2.0 Fibonacci extension level, or $7.59, in line with the retracement. It is unlikely that the cryptocurrency will rise further in the future. Currently, the daily stochastic of the altcoin is above the level of 80. The altcoin might suffer further losses. The cryptocurrency with the fifth best performance has the following characteristics:
Market capitalization: $6,248,240,417
Trading volume: $414,408,290
7–day gain/loss: 28.20%
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their research before investing in funds.
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