Santiment Spotlights Three Altcoins Worth Watching  

By Ben Knight January 09, 2024 In Altcoins, Arweave, MultiversX
  • Using Relative Strength Index readings, Santiment has identified three altcoins that may be set to reverse current downtrends.
  • MultiversX (EGLD), Arweave (AR) and Bonk (BONK) are all up over the past 24 hours, suggesting that Santiment’s prediction of a rally may be spot on.
  • It’s worth noting that using one technical indicator to make investment and trading decisions can be fraught with danger.

As the crypto market continues to salivate over the prospect of a spot Bitcoin ETF, many in the community are gearing up for the next bull run. Even though the overall market has been a bit hit or miss of late, there are several altcoins that present good medium-term buying (or selling) opportunities, according to crypto analysts Santiment.

MultiversX, Arweave and Bonk Lead the Pack

Using technical analysis over a one-year chart, Santiment has identified MultiversX (EGLD), Arweave (AR) and Bonk (BONK) as three coins poised for a “relief rally”. The primary indicator used for this prediction was the Relative Strength Index (RSI), a momentum indicator that can assess whether a coin is overbought or oversold. 

MultiversX, originally Elrond, has enjoyed a solid 2023, gaining nearly 60% over the course of the year. However, the coin has been in freefall in the past week, dropping 25%+ amid worsening market conditions. According to Santiment, the RSI for MultiversX has sunk to an extremely low 22.7, which indicates the asset has been heavily oversold. 

EGLD, seven-day chart, source: CoinMarketCap

Arweave is another coin that’s taken a big hit over the past week, with the value of AR dropping nearly 15% since the start of 2024. This caps off what’s been a rather mediocre 12 months for the crypto project, which has gained about 20% but is still only worth about 1/10th of its previous all-time high. AR’s RSI is around 30 for now, which puts it in oversold territory.

Arweave, annual chart, source: CoinMarketCap

Finally, Santiment has suggested that the Solana memecoin Bonk might be in position for a rally, after a poor monthly performance. BONK is down about 6% since this time in December, as hype around the crypto asset appears to be drying up. That said, at the time of writing BONK has responded – with the coin jumping in value 18% in the past 24 hours. This may have been the oversold conditions Santiment was referring to, meaning it could possibly be too late to cash in on BONK’s trend reversal.

On the flipside, Santiment named three crypto projects with RSI readings of over 70, which usually means that their bull runs may be slowing or reversing. 

It’s worth noting that an oversold RSI reading doesn’t necessarily mean a trend reversal is incoming – rather, it might just mean that the downtrend will slow for the time being. The same can be said for overbought RSI signals. Additionally, relying on a single indicator to make price predictions can be incredibly risky, especially considering that the RSI does not factor in any fundamental (news) or volume metrics.

Ben Knight

Ben Knight

Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.

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