Despite a widespread downturn in the cryptocurrency market, with more than $230 billion erased within a 24-hour period, certain assets maintain an overbought status on the daily Relative Strength Index (RSI).
The Relative Strength Index serves as a potent gauge of market momentum, akin to a thermometer for current market conditions. Presently, the average daily RSI for all cryptocurrencies has fallen to 44.25, hovering between ‘neutral’ and ‘weak’ territory.
This marks a notable shift from the previous week, where the average RSI surpassed 60, indicating a ‘strong’ market. These insights were gathered by Finbold through data sourced from the CoinGlass heatmap.
![](https://sollcrypto.com/wp-content/uploads/2024/03/Screen-Shot-2024-03-19-at-8.06.29-PM.png)
Nevertheless, certain cryptocurrencies have steadfastly maintained their position in the ‘strong’ zone despite experiencing unfavorable price action over the past 24 hours. Specifically, two of these tokens are currently signaling a substantial sell-off, persisting in the ‘overbought’ territory with RSI levels above 70.
A sell signal has been indicated for TraderJoe (JOE), which has entered an overbought condition.
Initially, TraderJoe (JOE), the native token of Avalanche’s leading decentralized exchange, continues to maintain an overbought status in the daily timeframe. Presently, JOE’s 24-hour Relative Strength Index (RSI) stands at 74.83, significantly surpassing the market’s average.
Interestingly, despite a 5.83% decline to $1.05, the token exhibits signs of strength on the weekly chart. TraderJoe boasts a 7-day RSI of 60.61, potentially sufficient to negate this sell signal if it demonstrates short-term resilience.
However, it’s worth noting that JOE primarily trades within the Avalanche ecosystem, which could result in substantial delays in price performance during broader market downturns.
![](https://sollcrypto.com/wp-content/uploads/2024/03/Screen-Shot-2024-03-19-at-8.07.36-PM.png)
Space ID (ID)
Another cryptocurrency showing signs of being overbought is Space ID (ID), boasting a daily Relative Strength Index of 73.63. Notably, its 24-hour price movement appeared even more robust than JOE’s, registering a 3.7% decrease to reach a spot price of $1.55.
Space ID operates as a protocol aimed at establishing a name service network, facilitating domain exchanges within Web3. It serves as a competitor to the well-known Ethereum Name Service (ENS), both of which operate on the Ethereum (ETH) blockchain.
![](https://sollcrypto.com/wp-content/uploads/2024/03/Screen-Shot-2024-03-19-at-8.08.30-PM.png)
Nonetheless, these two cryptocurrencies might defy expectations and surpass market performance, maintaining their robust momentum despite the indicated sell signal. An overbought RSI doesn’t necessarily predict an imminent price crash, and cryptocurrency traders should evaluate various factors and technical indicators when making financial decisions.