Numerous altcoins are now oversold as the majority of the crypto market keeps the selling pressure
With the correction worsening in the cryptocurrency market, altcoins like AVAX, LUNA, and Cardano faced heavy selling pressure which pushed their price further down. At the same time, assets in the market could lose space for further decline, according to the Relative Strength Index indicator.
Cardano’s RSI reaches new lows
The relative strength index on Cardano has recently dropped below the value of 30, which is considered the entry to the extremely oversold zone. At press time, the Relative Strength Index shows values of 27 for Cardano, suggesting that the asset may have reached the local bottom.
When it comes to price action, ADA is trading at $0.7, which is the lowest point the coin has reached in the last year. The last time the market observed the Ethereum counterpart around the same price zone was in February 2021.
AVAX and LUNA performance
While Cardano is far from making a decent recovery on the market, AVAX and LUNA show more discrete performance as both cryptocurrencies trade above key support points like the 200-day moving average.
But at the same time, both assets have plunged at least 11% in the past 24 hours following the general trend in the cryptocurrency market. As for the RSI on the two assets, the indicator is now moving around 48, which is the average value for an asset moving within the range.
On more short-term charts like the four hours and the one hour, RSI has already entered the oversold zone, which indicates that markets will most likely face a short-term recovery in case inflows appear on the market again.
At press time, AVAX and LUNA are trading at $66.8 and $52, respectively.
