Amid the bearish market since the start of the year, some cryptocurrencies have overcome the same pattern. On the other hand, most of the cryptocurrencies have been following the pattern of the mainstream currencies. This has led few potential cryptocurrencies to produce low returns as it records oversold signals.
Significantly, analysts at Santiment reports that ADA, MATIC, CRO, and LINK displays strong and oversold signal. This counts transaction volume, high market capitalization, and active addresses that result in low returns. Besides, the logic behind this bear trend for these potential tokens is that they are undervalued. It is currently forecast as being undervalued since this will result in a further increase in market worth.
Oversold Tokens
The concept of these undervalued tokens is that these tokens are ready to surge higher in the upcoming weeks. According to Santiment experts, the oversold tokens are Cardano (ADA), Polygon (MATIC), Crypto.com coin (CRO), and Chainlink (LINK).
As a matter of fact, the entire crypto industry is aware that Cardano and Polygon networks have attractive protocols and have high valuations. Thus, the support from the community for these projects remains high. If the market begins to recover, then it might lead the price value of ADA and MATIC to run high at a rapid pace.
Santiment is an analysis platform that supports technical analysis and also helps in identifying bullish and bearish patterns. According to the Strong and Oversold Screener, Cardano and Polygon may depart the “oversold” region due to price gain. Whereas, Crypto.com Coin and Chainlink may have a similar dynamic, but with smaller price fluctuation rates.
As a result, traders are jumping into tokens that will produce high gains rather than cryptocurrencies like BTC and ETH as they will provide lesser gains. Investors and traders are hoping the previously mentioned tokens have a higher chance of breaking out of the bearish circle in the next term.