2 overbought cryptocurrencies to avoid trading now

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 Traders 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 Speculative 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 The post 2 overbought cryptocurrencies to avoid trading now appeared first on Finbold .