Two prominent digital assets, Nexo (NEXO) and Quant (QNT), are flashing technical signals suggesting investors should proceed cautiously. According to recent market data, both cryptocurrencies show overbought indicators that could lead to significant price corrections in the near term.
The crypto lending platform Nexo began regaining speed after declaring its plans to reenter the US market. The platform returned to the US market, although it had to depart temporarily in 2022 because of issues with its interest-earning services regulations.
Co-founder Antoni Trenchev noted that the positive changes in US regulations under President Donald Trump’s leadership led to Nexo’s return to the American market.
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According to market experts, Nexo is vulnerable to significant trading risk. At $1.27 per token, Nexo demonstrated a 1.60 percent increase throughout the previous day.
The Relative Strength Index (RSI) indicator reveals that the asset currently shows signs of being overbought by crossing a specific threshold.
NEXO’s 24-hour RSI is 71.98, its 12-hour RSI is 69.31, and the 4-hour chart indicates a moderate 58.26. When RSI exceeds 70, a digital asset enters overbought territory and risks price correction.
Source: Coinglass
Rising RSI Levels Put Quant on Investor Watchlist
Quant is also on analysts’ radar, with its technical indicators pointing to a potential decline. Priced at $86.70 at the time of writing, QNT has gained 1.40 percent in the last 24 hours. However, its RSI data suggests that the current price level may not hold much longer.
The 24-hour RSI for QNT has reached 70.99, signaling overbought conditions, while the 12-hour RSI reaches 73.64, and the 4-hour RSI stands at 69.03. These market indicators serve traders to detect impending short-term price direction changes.
Source: Coinglass
Technical experts predict that Nexo, alongside Quant tokens, currently experiences excessive bullish momentum, which will most likely encounter difficulties maintaining its upward trajectory. The market often experiences a correction following RSI values reaching high indicators regardless of the broader market momentum trend.
Market experts recommend that investors avoid trading Nexo and Quant throughout this week, owing to their present technical analysis. Due to market consolidation and reduced earning potential, both indicators demonstrate the risk of a price decline.
