2 overbought cryptocurrencies to avoid trading this week

The cryptocurrency market began the week with a sharp correction as Bitcoin ( BTC ) and other majors pulled back on Monday, triggering widespread ￰0￱ the downturn, some tokens continue to flash overbought signals, a technical condition that often warns of short-term reversals. Notably, an asset is typically considered overbought when its Relative Strength Index ( RSI ) rises above 70, signaling extended buying ￰1￱ strong rallies can keep tokens elevated in this zone, the higher the RSI climbs, the greater the risk of consolidation or ￰2￱ assets currently flashing such signals are PAX Gold ( PAXG ) and Avalanche ( AVAX ). PAX Gold (PAXG) PAXG, a tokenized form of gold , is trading near $3,798.83 with a 1.74% gain in the past 24 ￰3￱ RSI readings show overheating across multiple timeframes: the one-hour at 76.76, four-hour at 86.32, the 12-hour at 78.85, and daily at 78.7, all well above the overbought ￰4￱ price and RSI chart.) AVAX has surged to $34.72 after a 12% rally in the past 24 hours, bucking the broader market ￰5￱ move comes after several firms, including Bitwise and REX Shares, filed for Avalanche-linked exchange-traded funds ( ETFs ), covering both spot and strategy ￰6￱ describe the wave of applications as the “ETF floodgates opening,” with Bloomberg projecting a 90% approval chance for altcoin ETFs by late ￰7￱ filings point to growing institutional validation for Avalanche and could attract fresh liquidity if approved.

Still, momentum indicators suggest caution: the 12-hour RSI sits at 65.67, while the daily reading has crossed into overbought territory at ￰8￱ price and RSI chart.