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Finbold 2025-02-25 18:59:31

Buy signal for two oversold cryptocurrencies this week

The cryptocurrency market has suffered a major downturn, wiping out $325 billion in market capitalization since February 21, with $150 billion liquidated in just the past 24 hours according to CoinGlass data . The sell-off has sent shockwaves across the sector, dragging down major digital assets and severely impacting liquidity in the once-booming memecoin market. Donald Trump’s renewed tariff threats are creating uncertainty across the sector, while a $1.4 billion security breach at Bybit adds another layer of instability. Amid this backdrop, Finbold analyzed the Relative Strength Index ( RSI) heatmap from CoinGlass on February 25. With an average 12-hour RSI of 37.50, Finbold identified potential buy opportunities even as volatility continues to challenge market stability. Bitcoin (BTC) Bitcoin ( BTC ) is flashing a potential buying opportunity as extreme oversold conditions suggest a short-term rebound. The four-hour RSI has dropped to 17.35, while the 12-hour RSI sits at 20.63, both indicating significant selling pressure that appears to be waning. Crypto Market RSI Heatmap, 12-hour chart: BTC. Source: CoinGlass Meanwhile, the 24-hour RSI of 27.22 confirms prolonged weakness, a signal that has historically preceded corrective bounces. BTC has plunged 9.79% in the last 12 hours, marking a potential local bottom where accumulation often begins. The technical analysis further supports this outlook, with analysts suggesting that BTC is experiencing a typical bull cycle pullback, a phase where sharp dips create opportunities before the next leg higher. Historical trends indicate that BTC could soon stage a strong recovery , making this a compelling entry point for buyers. XRP XRP is showing similar signs of a potential bottom, with its 12-hour RSI at 27.48 and 4-hour RSI at 25.25, both well below the oversold threshold of 30. Crypto Market RSI Heatmap, 12-hour chart: XRP. Source: CoinGlass XRP has plunged 14.8% in the last 12 hours, creating a setup where buyers may soon regain control. Its 24-hour RSI at 33.36, though slightly above the oversold threshold, shows undervaluation aligning closely with broader market conditions. Supporting these RSI-based signals, weekly technical indicators also lean bullish , with moving averages flashing a strong buy signal despite some mixed signals. The Exponential and Simple Moving Averages across multiple timeframes remain in buy territory, further strengthening the long-term bullish outlook. While short-term momentum indicators like MACD remain bearish , the broader trend favors accumulation before a potential recovery. While RSI points to a potential rebound for BTC and XRP, relying on a single indicator comes with risks. Market conditions remain volatile, and broader factors like volume, and fundamental developments play a crucial role in shaping price action. Featured image via Shutterstock The post Buy signal for two oversold cryptocurrencies this week appeared first on Finbold .

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