RSI Reveals These Altcoins To Contain The Most Extreme Values Right Now
In a new 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.Looks like three of these coins have a low value of the metric, while the other three are at high levels | Source: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. 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: