2 overbought cryptocurrencies to avoid trading this week

The cryptocurrency market is in a consolidation phase, but several digital currencies are witnessing increased buying pressure, pushing them into the overbought zone. Indeed, these cryptocurrencies are recording high Relative Strength Index (RSI) readings, which point to a potential crash in the coming week. Nexo (NEXO) and Quant (QNT) are among those showing signs of being overbought, making them risky bets for traders. Nexo (NEXO) Crypto lending entity Nexo is witnessing increased activity after announcing its re-entry into the U.S. market. Co-founder Antoni Trenchev has credited the move to a more favorable regulatory environment under the Donald Trump presidency. Notably, Nexo exited the U.S. in 2022 following regulatory challenges related to its Earn Interest Product, compounded by the FTX collapse and a broader crackdown on crypto lenders. However, NEXO’s price action raises concerns, signaling an imminent downturn. Currently trading at $1.27, the token has seen a 1.60% increase over the past 24 hours. More telling are its RSI values with a reading of 71.98 on the 24-hour chart, 69.31 on the 12-hour chart, and 58.26 on the 4-hour chart. Generally, an RSI above 70 indicates an overbought condition. Quant (QNT) Quant, a blockchain interoperability project, is also flashing warning signs for traders. Priced at $86.70 as of press time, QNT has posted modest gains of 1.40% over the past 24 hours. However, its RSI readings are concerning, with figures at 70.99 on the 24-hour chart, 73.64 on the 12-hour, and 69.03 on the 4-hour. These elevated RSI levels, particularly the 12-hour RSI above 70, potentially signal a forthcoming price dip. Although the technical indicators suggest that the highlighted digital assets might crash, their next price trajectory heavily depends on broader market sentiment. If Bitcoin (BTC) breaks past the $95,000 mark, there’s a good chance both NEXO and QNT will follow suit. Featured image via Shutterstock