Buy Signal for Atom and Cosmos: The Most Oversold Cryptocurrencies This Weekend

The State of the Cryptocurrency Market

The cryptocurrency market continues to crash as traders and investors wonder when the digital assets will reach the bottom. In such an unpredictable market, players can look for technical indicators that assist in spotting potentially oversold cryptocurrencies to buy.

Using Technical Indicators to Spot Opportunities

One of these popular indicators is the Relative Strength Index (RSI), which measures an asset’s momentum based on its activity. The RSI considers a cryptocurrency’s average gains and losses within a 14 trading period.

On September 6, we turned to the 4-hour RSI data from CoinGlass, seeking potentially oversold buying opportunities. At this time, the average relative strength index was at 41.23, indicating a neutral to weak momentum.

Cosmos (ATOM): Leading the Oversold Pack

First, Cosmos (ATOM) appears as the most oversold cryptocurrency in the last 56 hours, scoring 25.37 index points. Currently trading at $3.847, ATOM is down 1.54% in the last four hours.

Cosmos' native token also shows oversold values below a 30 RSI across the 12-hour, daily, and weekly time frames. Therefore, this indicator suggests ATOM could be a potentially good buy in the following days, betting on a reversal.

• Caleb Franzen believes Cosmos could have one of the worst charts in the whole market.
• The token is trading below pre-COVID highs, now at the lowest levels since September 2020.

Market Sentiment and Potential for Recovery

Meanwhile, Jonathan Carter agrees with the downtrend but is optimistic about a bullish reversal if ATOM manages to bounce from its support zone, targeting up to $8.85 per token.