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#May Market Outlook# Investors' Favorite But Danger is Great! These 2 Altcoin Prices Will Crash! It Could Crash at Any Moment.
As the cryptocurrency market enters the consolidation phase, some altcoin charts are notable for strong buying waves. However, this rise may not always be a sign of a healthy trend. Some cryptocurrencies in particular have technically entered the "overbought" zone. This could be a sign of a potential correction.
Two altcoins on our radar this week are Nexo (NEXO) and Quant (QNT). Although both are on the rise in the short term, RSI indicators indicate that investors should be cautious. If Bitcoin fails to exceed the $95,000 level as expected, these two assets may experience sharp pullbacks.
Top Altcoin “Nexo (NEXO)”: Return Rally to the US Could End with Reaction Selling.
Nexo has seen a noticeable increase in investor interest after announcing its return to the US market. The company’s co-founder Antoni Trenchev attributed this return to a friendlier regulatory environment. The approach of the Donald Trump administration, in particular, has made it possible for Nexo to re-enter the US market.
However, NEXO’s price movements are technically risky. The token is currently trading at $1.27 and has gained 1.6% in the last 24 hours. The most striking data is the RSI indicator. It is at 71.98 on the 24-hour chart, 69.31 on the 12-hour chart and 58.26 on the 4-hour chart. RSI above 70 generally indicates that the overbought zone has been entered and the risk of correction is increasing.
Second-Line Altcoin “Quant (QNT)”: Interchain Hero or Temporary Hype?
Although Quant stands out as an important project targeting interchain communication, current technical data requires investors to be careful. The token is trading at $86.70 and stands out with a daily increase of 1.4%. However, whether this increase is sustainable is a matter of debate.
QNT’s RSI values are quite high: 70.99 for 24 hours, 73.64 for 12 hours and 69.03 for 4 hours. Especially the 12-hour RSI exceeding 73 may indicate that the upward movement is about to run out in the short term. Technically, these levels indicate that a correction is on the way.
General Market Impact:
Be Careful If Bitcoin Doesn't Break $95,000.
Although Nexo and Quant are technically overbought, the general market sentiment may determine the direction of these two altcoins. If Bitcoin manages to break $95,000, the possibility of continued growth in altcoins such as NEXO and QNT may increase. However, if BTC cannot break this level, the correction process for these two altcoins may be more severe.
It is of great importance for investors to consider technical indicators such as RSI in their buying and selling decisions this week. Overbought assets may be open to profit taking in the short term, which may lead to sudden declines in prices.