Digital assets have been quite bearish the last month, as Bitcoins price has seen -10% drawdowns. During this time, it has caused many digital assets to hit “oversold” territories as seller exhaustion starts to kick in. When looking at a list of the top cryptocurrencies by market cap, which ones could see a reversal soon due to being extremely oversold?
RSI Indicator
Typically speaking, many investors and traders will look at a technical indicator called RSI to gauge potential momentum. RSI stands for relative strength index, which helps digital asset investors identity overbought and oversold levels. On a typical chart, RSI is usually a technical indicator that can be applied to stocks or cryptocurrencies. When the RSI is displayed, it tends to be a line graph that reads 0 to 100.
The image above is an example of RSI applied to a chart. Since the momentum oscillator was introduced in 1978, various data shows that certain levels on RSI can be extremely important. Historically speaking, any reading over 70 has been considered “overbought.” In this scenario, the digital assets or stocks have a higher chance of experiencing a pullback ( sell-off ). On the contrary, RSI readings with 30 or less signal “oversold” conditions. In this environment, the digital assets can be considered undervalued and poised for a reversal ( rally ).
Digital Assets
By applying the metrics discussed above, we can identify cryptocurrencies that are undervalued and have the potential to rally in the near term. We have outlined the top 10 digital assets that are in oversold territories.
Crypto Analysis – Top 10 Most Oversold Digital Assets
- Ethereum Classic ( ETC ): 29.06 RSI
- Crypto.com ( CRO ): 34.53 RSI
- Stellar ( XLM ): 35.20 RSI
- Tezos ( XTZ ): 36.02 RSI
- UNUS SED LEO ( LEO ): 36.36 RSI
- Bitcoin Cash ( BCH ): 37.36 RSI
- Bitcoin ( BTC ): 37.86 RSI
- XRP ( XRP ): 38.06 RSI
- Cardano ( ADA ): 38.14 RSI
- Zcash ( ZEC ): 38.19 RSI
Digital Asset Overview
Ethereum Classic ( ETC )
Ethereum Classic currently trades at $5.13 with a market cap of $597,001,372. Over the last month ETC is down -24.1%, and it is down -21.4% over the last 1 year. Ethereum Classic is the 33rd largest cryptocurrency by market cap.
Crypto.com ( CRO )
CRO currently trades at $0.149585 with a market cap of $2,977,836,077. Over the last month, CRO is down -7.1%, but has seen significant growth over the last year, surging +293.7%. CRO is currently the 11th largest cryptocurrency by market cap.
Stellar ( XLM )
Stellar currently trades at $0.080525 with a market cap of $1,663,396,890. Over the last month, XLM is down -19.9%, but has seen growth of +37.2% over the last year. XLM is currently the 17th largest cryptocurrency by market cap.
Tezos ( XTZ )
Tezos currently trades at $2.51 with a market cap of $1,814,859,578. Over the last month, XTZ is down -37.1%, but has rallied +146.9% over the last year. Tezos is the 16th largest cryptocurrency by market cap.
UNUS SED LEO ( LEO )
LEO currently trades at $1.179 with a market cap of $1.179 billion. Over the last month, LEO is down -6.79%, and has gained +10.26% over the last year. UNUS SED LEO is the 20th largest digital asset by market cap.
Bitcoin Cash ( BCH )
Bitcoin Cash currently trades at $223.07 with a market cap of $4,121,739,912. Over the last month, BCH is down -21%, and has fallen -26.7% over the last year. Bitcoin Cash is the 6th largest cryptocurrency by market cap.
Bitcoin ( BTC )
Bitcoin currently trades at $10,227.59 with a market cap of $189,988,961,342. Over the last month, Bitcoins price has dropped -10%, and has grown +1.5% over the last year. Bitcoin continues to be king, being the largest cryptocurrency among all digital assets.
XRP ( XRP )
XRP currently trades at $0.241661 with a market cap of $10,877,752,761. Over the last month, XRP has dropped -15%, and has dropped -6.6% over the last year. XRP is the 4th largest cryptocurrency by market cap.
Cardano ( ADA )
Cardano currently trades at $0.095811 with a market cap of $2,981,291,032. Over the last month, ADA has fallen -30%, but has rallied +105.7% the last year. ADA is the 12th largest cryptocurrency by market cap.
Zcash ( ZEC )
Zcash currently trades at $60.03 with a market cap of $600,592,235. Over the last month, ZEC has dropped -26%, but has grown +33% over the last year. Zcash is the 33rd largest cryptocurrency by market cap.
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