These Altcoins Are Showing Most Bullish & Bearish Divergences: Santiment
09 Gennaio 2024 - 7:00PM
NEWSBTC
The analytics firm Santiment has revealed the list of altcoins that
are showing the greatest bullish and bearish divergences currently.
RSI Reveals These Altcoins To Contain The Most Extreme Values Right
Now In a new post on X, Santiment has discussed some altcoins that
are showing overvalued or undervalued conditions based on the
Relative Strength Index (RSI) currently. The RSI refers to a
momentum metric in technical analysis that tracks the speed and
magnitude of recent changes happening in the price of any given
asset. This measurement can be made over any period, but in the
context of the current topic, the 1-day RSI is of relevance.
Related Reading: Bitcoin Correlation To Nasdaq Continues To Be
Negative: What It Means Generally, a high value of this indicator
can be a sign that the asset is overheated right now and may be at
risk of forming a top. More specifically, the 70 mark is chosen as
the cutoff for when the probability of a bearish reversal becomes
significant. On the other hand, the RSI being 30 or lower can imply
the price is under its fair value at the moment, and as such, a
potential reversal to the upside could be brewing for the asset.
Now, here is the chart shared by the analytics firm that shows the
trend in the 1-day RSI for a few different altcoins from the top
150 market cap list over the past year: Looks like three of these
coins have a low value of the metric, while the other three are at
high levels | Source: Santiment on X As displayed in the above
graph, the 1-day RSI has been at high levels for Maker (MKR), Venus
(vBNB), and Sei (SEI) recently. To be more specific, the metric has
a value of 74.6, 72.4, and 75 for vBNB, SEI, and MKR, respectively.
Clearly, these RSI levels are in the zone typically associated with
an overheated market. Maker has recently enjoyed a sharp rally,
observing gains of over 30% during the past couple of weeks. If
this metric is anything to go by, though, the asset’s strong run
may be approaching an end. On the other end of the spectrum are the
altcoins Elrond (ELGD), Arweave (AR), and Bonk (BONK), which are
observing low levels of 1-day RSI. ELGD and AR are inside the
underpriced zone with the metric sitting at 22.6 and 29, while the
Solana-based memecoin BONK is floating just over the area with a
value of 31. According to Santiment, all six of these coins have
also separated from the rest of the altcoins cohort, implying a
bearish/bullish (depending on whether overvalued or undervalued)
divergence could be forming for them. Related Reading: Analyst Says
Expect A Decline To $30,220 If Bitcoin Loses This Support As such,
coins like BONK observing a bullish divergence may be likely to see
some price rise, so that they can catch up with the other alts.
Similarly, MKR and others may see a correction to be more in line
with the rest of the market. BONK Price Bonk has had a bad time
these last few weeks, as its price has been following an overall
downward trajectory. The coin may finally be starting to turn
itself around, however, as its price has shot up over 22% in the
past 24 hours. The price of the coin seems to have jumped over the
past day | Source: BONKUSD on TradingView Featured image from
iStock.com, charts from TradingView.com, Santiment.net
Grafico Azioni Maker (COIN:MKRUSD)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Maker (COIN:MKRUSD)
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Da Apr 2023 a Apr 2024