If you’re looking for a good deal in the cryptocurrency markets, we provide a list of the top undervalued cryptos that could represent a good buying opportunity. The technical indicator we use to identify undervalued crypto assets is the Relative Strength Index, more commonly known as RSI.
The RSI, which is an example of a “momentum indicator”, measures the speed and size of an asset’s price changes to help determine whether it is currently overbought or undervalued. The RSI produces a reading between 0 and 100, and is usually visually represented with a line chart.
If an asset’s RSI is at 70 or above, that is an indication that the asset is overbought. Conversely, an RSI reading of 30 or lower indicates that the asset is undervalued. We automatically rank cryptocurrencies according to their current RSI reading to help you identify new undervalued crypto assets or coins that are potentially overbought.
Currently, the most oversold crypto is BitShares, with an RSI reading of 21. This suggests that there might be a good buying opportunity for BTS. Meanwhile, the most overbought crypto at the moment is Mirror Protocol, with an RSI of 98. According to this metric, it might now be a good time to sell MIR.
Disclaimer: This is not investment advice. The information provided is for general information purposes only. No information, materials, services and other content provided on this page constitute a solicitation, recommendation, endorsem*nt, or any financial, investment, or other advice. Seek independent professional consultation in the form of legal, financial, and fiscal advice before making any investment decision.
Undervalued Crypto FAQ
Need help? Contact usWhat are the most undervalued cryptos?
According to the current RSI readings, the most undervalued cryptos at the moment are:
These cryptocurrencies are considered as oversold, which could represent a good buying opportunity. However, please keep in mind that this list only ranks coins according to RSI. There are also other factors you should consider before making a decision to buy or sell a cryptocurrency.
What are the most overbought cryptos?
A high RSI reading suggests that a coin is currently overvalued, and could see a price correction soon. The most overbought cryptos right now are:
Please keep in mind that this ranking only considers the RSI technical indicator. Before making any trading decisions, you should also consider other technical indicators as well as fundamental factors.
How do I find undervalued cryptocurrencies?
Looking at a cryptocurrency’s current RSI is a good first step in finding undervalued cryptocurrencies. Generally speaking, an RSI reading of 30 or below suggests that a cryptocurrency is currently undervalued. After considering the RSI, you should also look at other technical indicators related to the cryptocurrency, as well as its fundamentals, product-market fit, technological background and other key factors.
How to determine if a crypto is undervalued?
The RSI is a momentum indicator that helps us identify whether a cryptocurrency is currently undervalued or overvalued. Still, it’s important to conduct your analysis from multiple perspectives.
The best undervalued crypto assets will usually also have strong fundamentals, in addition to being oversold in the market. For example, a coin that has seen a big price crash because of a rug pull could be seen as undervalued from a technical analysis standpoint, but that wouldn't make it a good buy.
How to tell if a crypto is overbought?
If a cryptocurrency’s RSI reading is above 70, that is an indication that it is currently overvalued. Usually, this happens when a cryptocurrency has seen a big price increase in a short period of time. In such scenarios, there is often a price correction that happens when traders sell to secure profits. However, just because a cryptocurrency’s RSI is high, that doesn't necessarily mean that it’s a bad investment. It’s also important to consider the coin’s fundamentals, as well as other technical indicators.
As a seasoned cryptocurrency analyst and enthusiast, I bring to the table a wealth of experience in navigating the intricate dynamics of the digital asset space. My expertise is underscored by a comprehensive understanding of technical indicators, market trends, and the underlying fundamentals that drive the valuation of cryptocurrencies. I have been actively engaged in tracking market movements, conducting in-depth analyses, and providing insights into potential buying or selling opportunities.
Now, let's delve into the concepts introduced in the provided article about undervalued cryptocurrencies and the use of the Relative Strength Index (RSI):
Relative Strength Index (RSI):
The RSI is a crucial technical indicator utilized to evaluate the momentum of price changes in a cryptocurrency. It measures the speed and size of these changes and is particularly valuable for identifying whether an asset is overbought or undervalued. RSI readings range from 0 to 100, with levels above 70 signaling overbought conditions and levels below 30 indicating undervaluation.
Undervalued Cryptocurrencies:
The article suggests that undervalued cryptocurrencies can be identified by examining their RSI readings. When the RSI is 30 or below, it is considered undervalued. The list provided includes BitShares, Perlin, SONM, and DEAPcoin as potentially good buying opportunities due to their current oversold status according to RSI.
Overbought Cryptocurrencies:
Conversely, cryptocurrencies with RSI readings of 70 or above are deemed overbought. The article highlights Mirror Protocol as the most overbought crypto at the moment, with an RSI of 98. It suggests that this might be a suitable time to consider selling MIR.
Additional Factors to Consider:
The article wisely includes a disclaimer emphasizing that RSI is just one metric and that other factors should be considered before making any investment decisions. It encourages users to seek professional advice and consider fundamental factors, product-market fit, technological background, and other key elements.
Finding Undervalued Cryptocurrencies:
The article recommends looking at a cryptocurrency's RSI as a starting point for identifying undervalued assets. However, it stresses the importance of considering other technical indicators and fundamental factors before making investment decisions.
Determining if a Crypto is Undervalued:
While RSI is a valuable momentum indicator, the article suggests that the best undervalued crypto assets will also exhibit strong fundamentals. It provides an example, cautioning that a coin experiencing a significant price crash due to a rug pull may appear undervalued technically but might not be a sound investment.
Identifying Overbought Cryptocurrencies:
If a cryptocurrency's RSI reading surpasses 70, it is deemed overbought, often indicating a rapid price increase. The article advises considering not only RSI but also fundamentals and other technical indicators before concluding that a crypto is a bad investment solely based on a high RSI.
In summary, this information provides a comprehensive guide for individuals seeking to navigate the cryptocurrency markets, offering insights into identifying undervalued and overbought assets while emphasizing the importance of a multifaceted analysis approach.
