Cryptocurrency Market Overview

The cryptocurrency market remains largely in a consolidation phase, led by Bitcoin (BTC), which is pushing to make a decisive break above the $85,000 resistance while targeting the $90,000 mark.

Despite the suppressed price movement, several digital assets are exhibiting increased buying pressure that has elevated them into overbought territory, which historically serves as a precursor to price corrections.

While short-term traders might still find opportunities in such an environment, the risk of a downturn from the overbought conditions outweighs potential rewards. Thus, it’s advisable to avoid the following two cryptocurrencies next week:

BinaryX (BNX)

BinaryX (BNX) has recently gained popularity, recording massive capital inflows. The token is trading at $1.49 as of press time, with a 37.49% rise over the past 24 hours.

Although these short-term gains may prove tempting, the token’s 15-minute relative strength index (RSI) of 74.78, along with 1-hour, 4-hour, and 12-hour RSI values of 82.13, 83.32, and 70.53 respectively, indicates that BNX is currently in overbought territory.

Generally, an RSI above 70 suggests an asset may be overvalued and due for a pullback. Given the platform’s increased on-chain initiatives, there is growing activity around BNX, making it too hot for purchases at this moment.

In particular, the GameFi token is set to rebrand to Four (FORM), with leading exchanges like Bitget and Binance supporting the transition. The rebranding and a 1:1 token swap aim to refresh the project’s identity.

Although short-term volatility might affect BNX, its long-term outlook remains strong due to notable investment backing from entities like Binance Labs.

Cosmos (ATOM)

Cosmos (ATOM) has been among the standout movers amid the suppressed market conditions. As context, ATOM’s price has risen for five consecutive days, coinciding with sustainable demand as its futures open interest increased.

ATOM was trading at $4.702 as of press time, gaining 2.66% over the past 24 hours.

Despite this steady growth, the RSI metrics—68.75 (15 minutes), 62.51 (1 hour), 71.14 (4 hours), and 62.62 (12 hours)—suggest that ATOM is approaching overbought conditions, hinting that the asset’s upward momentum might be overstretched.

Notably, as of March 15, ATOM’s futures open interest surged to $93 million, the highest since February 2021. This metric tracks unfilled put and call orders, and rising open interest often signals a crypto rebound. However, the current overbought conditions call for caution.

While a high RSI suggests that the two highlighted digital assets are in overbought territory, it does not necessarily mean an immediate correction is imminent. However, it serves as a signal for caution, as historically, such conditions have preceded pullbacks.

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