A strong risk management framework is essential for anyone looking to succeed in cryptocurrency trading. This approach safeguards investments amid the highly volatile and rapidly evolving crypto market conditions.
In this context, traders can use different risk management strategies, with one key method being the avoidance of overextended cryptocurrencies. This strategy is particularly effective in protecting traders from sudden trend shifts that could lead to significant losses.
Within the arsenal of tools for managing risk, the Relative Strength Index (RSI) stands out. Cryptocurrency traders frequently use the RSI to detect when an asset is overbought. This might indicate a pending downward trend. On the other hand, oversold tokens could precede a sudden price surge in a downward-trending market.
In particular, Finbold spotted three cryptocurrencies to avoid trading next week, considering CoinGlass’s RSI heatmap on January 13. Ethereum Name Service (ENS), Sui Network (SUI), and ConstitutionDAO (PEOPLE) are showing overbought signals and, thus, extra risks.
ConstitutionDAO (PEOPLE) is a dissolved experiment
According to CoinMarketCap, ConstitutionDAO is a dissolved experiment due to…
