As the cryptocurrency market continues to search for a breakout after the October 10 crash, several assets are overstretched with increased trading activity
However, this capital inflow has pushed some assets into overbought territory, with relative strength index (RSI) readings surpassing the 70 threshold
Notably, assets in this overbought zone may be poised for a possible correction or consolidation in the coming sessions.
PAX Gold (PAXG)
PAX Gold (PAXG) is trading around $4,213.22, elevating its 24-hour RSI to 87.16, well above typical overbought levels
PAXG RSI and price chart. Source: Coinglass**PAXG RSI and price chart. Source: CoinglassTraders are loading into PAXG heavily amid the ongoing gold rally, as spot gold is being bid aggressively amid macroeconomic uncertainty
This heightened interest is compressing volatility to the upside and pushing momentum indicators like RSI into extreme zones
Notably, the sheer volume of capital flowing into PAXG leaves little room for sellers without triggering sharp reactions, increasing the risk of a sudden reversal if demand cools.
Zcash (ZEC)
On the other hand, privacy-focused asset Zcash (ZEC) has been on an upward tear in recent days, trading at $256.69 as of press time
Its RSI has reached 73.29. ZEC’s rally has been fueled by renewed enthusiasm for privacy coins, which many investors view as defensive or differentiation plays in crypto markets
PAXG, ZEC RSI, and price chart. Source: Coinglass**PAXG, ZEC RSI, and price chart. Source: CoinglassSpeculative flows, new listings, and greater institutional access through trusts or derivatives are also contributing to the trading frenzy.
In summary, while gold strength supports PAXG and privacy demand fuels ZEC, both assets show clear signs of technical exhaustion. Therefore, its ideal for traders to wait for momentum to cool and prices to stabilize before considering new, lower-risk entries.
Featured image via Shutterstock
Featured image via ShutterstockFeatured image via Shutterstock
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
