2 Overbought Cryptocurrencies to Avoid: LDO and ENA
Two overbought cryptocurrencies, Lido DAO (LDO) and Ethena (ENA), are showing overbought signals as their RSI readings surpass 70. LDO jumped 15.6% to $1.371 in 24 hours, with a four-hour RSI at 79.41 and daily RSI above 72 after whale accumulation. ENA rose 5.46% to $0.7749, breaking out of a bullish flag and hitting RSI levels of 73.75 (4h) and 73.41 (daily). Traders should note these overbought cryptocurrency conditions often precede consolidation or reversals. Risk management is advised as momentum may falter around support zones.
Bearish
Both Lido DAO (LDO) and Ethena (ENA) have entered overbought territory as their Relative Strength Index (RSI) values exceed 70 on multiple timeframes. Historical patterns show that cryptocurrencies with elevated RSI levels often face consolidation or short-term pullbacks as traders realize profits. For example, prior RSI spikes in similar altcoins led to retracements of 10-20% before stabilizing. LDO’s 15.6% rally and four-hour RSI of 79.41 heighten the risk of a correction, especially after significant whale accumulation. ENA’s breakout from a bullish flag and RSI readings around 74 suggest further upside potential but also warn of near-term profit-taking. Traders should watch key support levels—$1.30 for LDO and $0.70 for ENA—to gauge market sentiment. In the short term, these signals point to mild bearish pressure. Over the long term, project fundamentals remain intact, but price action may rely on healthy retracements to sustain future gains.