Nervos Network (CKB) is the only cryptocurrency with an overbought daily Relative Strength Index (RSI) in the market. Investors wonder if this is a sell signal or significant evidence of strength for CKB, considering overall conditions.
Notably, Nervos Network’s native token is overbought in CoinGlass‘s three higher time frames, according to data retrieved on April 10. CKB has a 74.98 4-hour RSI, 78.5 on the daily, and 78.8 for the weekly chart.
Interestingly, it is the only cryptocurrency with an overbought Relative Strength Indicator in the 24-hour heatmap. Meanwhile, other cryptocurrencies display a neutral average of 46.82 index points.
Crypto Market 24-hour RSI Heatmap, CKB. Source: CoinGlass
Cryptocurrency market in a week of uncertainty
In the meantime, Bitcoin (BTC) again dropped below the $70,000 psychological level, trading at $69,000 as of writing. The leading cryptocurrency has dragged the market down, followed by most altcoins.
However, this recent price action is not exclusive to cryptocurrencies, as the stock market and other leading finance assets have experienced a similar performance. Analysts blame the generalized bearish sentiment on forecasts of the United States CPI, expected to a 3.4% year-over-year.
?? CPI ESTIMATES FOR TOMORROWBANK OF AMERICA 3.3%BARCLAYS 3.4%CITI 3.4%GOLDMAN SACHS 3.4%JP MORGAN 3.4%MORGAN STANLEY 3.4%HSBC 3.4%UBS 3.4%BMO 3.4%TD 3.4%CITADEL 3.4%WELLS FARGO 3.5%SCOTIABANK 3.5%MEDIAN 3.4%
— GURGAVIN (@gurgavin) April 9, 2024Nevertheless, TradingView‘s total crypto market cap index still displays a strong uptrend and suggests continuation. The index marks a $2.50 trillion total capitalization, notably above the 50-day exponential moving average (EMA). On that note, a drop to $2.36 trillion, testing the 50-day EMA as support, would be the usual volatility.
Total Crypto Market Cap daily chart. Source: TradingView
All things considered, the seemingly overbought CKB has the potential to continue surging under favorable conditions. This would require a bullish cryptocurrency market with a total capitalization above the 50-day EMA and solid fundamentals for Nervos Network, which includes a growing demand for the token and positive developments.
On the other hand, losing demand, facing technical issues, or an overall trend shift risks punishing CKB investors. Furthermore, a continued neutral landscape performance could trigger a CKB sell-off following technical analysis patterns and profit realization trading strategies.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
