2 Overbought Cryptos that Traders Avoided This Week, What’s the Reason?

Jakarta, Pintu News – With relatively small short-term capital inflows in the crypto market, investors are now looking at various indicators to help predict price movements.

One indicator that stands out in this context is the Relative Strength Index (RSI), which is used to assess market conditions and support decision-making. The RSI itself measures the speed and magnitude of price changes within a range of 0 to 100.

When the RSI is above the 70 level, it usually indicates that an asset is overbought – meaning that the price has risen too fast and could potentially experience a correction or decline as investors start taking profits.

Currently, for investors looking for assets to buy in the coming week, there are several tokens showing high RSI values, indicating the need for caution.

Polygon (POL)

Starting with Polygon (POL), the token is trading at $0.169 and has shown mixed performance in the short term, with a decline of 5.8% on January 11. However, the RSI indicator provides a clearer picture of the direction of price movement.

Read also: Polygon Price Jumps 50% on the Back of On-Chain Demand: Will it Last?

On the 15-minute timeframe, the RSI stands at 51.79, indicating neutral market conditions in the very short term. On the 1-hour timeframe, the RSI drops slightly to 47.12, still reflecting a balance between buying and selling pressure. However, on the 4-hour timeframe, the RSI rose to 61.39, indicating the start of stronger buying pressure.

Concerns arise on the longer timeframes – the 12-hour RSI stands at 80.25, and the 24-hour RSI stands at 76.34. These numbers crossing the 70 level indicate that POL has experienced a fairly strong and sustained upward momentum, which is unlikely to be sustained for too long. This increases the risk of a reversal.

Investors who are considering entering the market should watch for signs of weakness or consolidation, as these overbought conditions are often followed by a price correction or downward adjustment phase.

Render (RENDER)

The same can be said for Render (RENDER), which is currently trading at $2,615. The token recorded a significant gain of 13.99% on January 11, 2026, indicating a growing interest in the asset.

However, its RSI value provides a warning signal for traders considering buying this week. On the 15-minute timeframe, the RSI has touched 70.53, indicating that the token has entered the overbought zone and could potentially experience buying fatigue in the short term.

Read also: RENDER Price Surges Above $2, Can Bulls Sustain Rally?

This situation is further reinforced on the 1-hour timeframe, with the RSI rising to 76.58, signaling very strong buying momentum. Although the RSI at 4 hours drops slightly to 69.39 (almost neutral), it rises again on the 12-hour timeframe to 73.33, and reaches 75.97 at 24 hours.

This consistently high RSI across multiple timeframes indicates that RENDER’s price surge may have gone too far, making it vulnerable to profit-taking and potential price declines.

Traders may be wise to wait for the RSI to fall back to neutral levels, around 50, before making any new purchases or capital placements.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Finbold. 2 Overbought Cryptocurrencies to Avoid Trading This Week. Accessed on January 16, 2026