Geopolitical tensions between Iran and Israel have put the cryptocurrency market in a bearish state, as fear escalates worldwide. In this context, two cryptocurrencies now present an oversold daily Relative Strength Index (RSI), making for a potential buy signal.
Israel plans to launch an attack against Iran in retaliation for its drone and missile offensive this past weekend. Amid uncertainties, the crypto and stock markets have been registering record losses since last Friday, affecting relevant technical indicators.
In particular, cryptocurrencies’ daily Relative Strength Index dropped to an average of 34.32 points, on April 16. Finbold retrieved the RSI average from CoinGlass on the same date, spotting two oversold cryptocurrencies below this level.
Crypto Market daily RSI Heatmap: ADA. Source: CoinGlass/Finbold
A technical analysis from the cryptocurrency trader Alan Santana validates this buy signal, aiming for a bold forecast of over 1,300% gains for the next bull run. On that note, even if ADA does not reach this extremely optimistic analysis, it still suggests an incoming price surge.
Cardano has recently lost its top 10 position by market cap to Toncoin (TON) and, later, to Dogecoin (DOGE). This represents a new challenge for the layer-1 blockchain and direct competitor to Ethereum (ETH) and Solana (SOL).
Buy signal for Chainlink (LINK)
Second, the leading Oracle blockchain, Chainlink (LINK), has a similar status to Cardano on its daily RSI. Yet, LINK draws for an even lower 24-hour Relative Strength Index of 27.78 after losing 9.2% in the period.
As of writing, Chainlink’s token trades at $13.24 and offers long-term investors a potentially strong buy signal. Still, short-term performance is uncertain amid geopolitical tensions escalating.
Crypto Market daily RSI Heatmap: LINK. Source: CoinGlass/Finbold
Chainlink has seen an increased demand since 2023, due to its properties for collecting off-chain data to decentralized finance (DeFi). This is a powerful use case given the ascension of real-world assets (RWA), fueled by BlackRock’s (NYSE: BLK) tokenization interest.
Investors now await further developments and news on the Iran-Israel conflict to determine their investment strategies. The geopolitical scenario brings huge risks to the landscape that continues to innovate and grow in its share of mind.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
