2 overbought cryptocurrencies to avoid trading this week

As the cryptocurrency market builds momentum toward new highs, several digital assets are flashing warning signs that warrant a cautious approach. With increased capital inflows, specific cryptocurrencies have consistently entered the overbought zone, with the Relative Strength Index ( RSI ) readings climbing above the 70 threshold. Such levels suggest buying pressure may be overextended, often leading to consolidation or a reversal as traders take profits. Below are two coins currently in overbought territory that warrant attention heading into the new week. Lido DAO (LDO) Lido DAO (LDO) plays a key role in one of Ethereum’s largest liquid staking protocols, allowing users to stake cryptocurrency while retaining liquidity. The token has surged 15.6% in the past 24 hours to $1.371. Amid this positive momentum, LDO’s RSI readings are elevated across time frames, hitting 79.41 on the four-hour chart and remaining above 72 on the daily, both well past the overbought threshold. LDO RSI chart. Source: Coinglass Much of the momentum around LDO has been driven by increased whale accumulation of the asset. Ethena (ENA) Ethena ( ENA ), which powers a synthetic dollar protocol built on Ethereum, is also trading in the overbought zone. The token has recently enjoyed strong bullish momentum, rising 5.46% in the past day to $0.7749. Its RSI stands at 73.75 on the four-hour chart and 73.41 on the daily, both above the overbought threshold. ENA RSI chart. Source: Coinglass Notably, crypto trading analyst Ali Martinez noted that Ethena has broken out of a bullish flag pattern, signaling a potential continuation of its July rally. The possible breakout points to upside targets of $1 and $1.50 based on Fibonacci extensions, provided momentum holds above the $0.70 support. ENA price analysis chart. Source: TradingView In summary, while overbought conditions do not guarantee an immediate downturn, they often signal that the pace of gains may be unsustainable. Featured image via Shutterstock The post 2 overbought cryptocurrencies to avoid trading this week appeared first on Finbold .

Source: Finbold