Buy signal for two strong cryptocurrencies this week

As October draws to a close, Bitcoin (BTC) has tapped into the long-anticipated “Uptober” momentum, breaking from a prolonged downtrend. The maiden cryptocurrency rebounded from October 10 lows below $60,000, establishing stability near $68,000 and recently surging to highs above $71,000.

In light of this renewed momentum, Finbold examined the Relative Strength Index (RSI) heatmap from CoinGlass on October 30 to identify emerging buy signals that could guide investors through the shifting market landscape. 

The market’s average four-hour RSI of 54 and daily RSI of 49.55 reflect a largely neutral sentiment, yet certain assets stand out. 

Against this backdrop, two cryptocurrencies – Dogecoin (DOGE) and Aave (AAVE), are displaying signs of strength and momentum, making them key assets to watch as the market stabilizes and potentially moves higher.

Dogecoin (DOGE)

Based on data from the RSI heatmap and technical indicators, Dogecoin appears well-positioned as a ‘buy’ in the current market environment. 

The 15-minute RSI of 43.01 and one-hour RSI of 44.02 suggest that DOGE remains in a relatively neutral zone in the short term, with room for increased buying pressure. 

However, the RSI gains notable strength on longer timeframes, reaching 62.82 at the four-hour interval and climbing further to 70.01 on the 12-hour and 70.89 on the 24-hour intervals, levels commonly associated with sustained bullish momentum.

The moving averages further support this positive outlook. From the 10-day EMA at 0.15104 to the 200-day EMA at 0.12058, all key moving averages indicate a “buy,” reinforcing the potential for continued gains. 

This alignment across multiple timeframes highlights DOGE’s established support levels and suggests that buying interest could drive the price higher, presenting a strong case for DOGE as a buy for investors seeking to leverage ongoing upward momentum.

Aave (AAVE)

Aave presents a compelling case for potential gains based on its RSI readings and supporting technical indicators.

In the short term, the 15-minute RSI at 60.05 and the one-hour RSI at 63.9 indicate moderate buying pressure without entering overbought territory, suggesting that there is room for further upward movement if positive sentiment persists.

This initial buildup of buying pressure is supported by a stronger four-hour RSI at 66.9, reflecting bullish momentum and indicating that AAVE could be on the verge of a breakout in the mid-term. 

Additionally, the 12-hour RSI at 59.33 and 24-hour RSI at 56.2 show steady buying interest, aligning with a sustainable trend and reinforcing the likelihood of continued gains.

Complementing the RSI, the moving averages reinforce this positive outlook. All major moving averages, from the 10-day EMA at 150.57 to the 200-day EMA at 122.50, flash buy signals, underscoring a robust long-term trend. 

This consistent alignment of buy signals across short and long-term moving averages points to solid support levels for AAVE, potentially suggesting that these levels could hold firm.

In conclusion, both Aave and Dogecoin present strong buy opportunities. AAVE’s RSI levels and buy signals from moving averages suggest mid to long-term growth potential. 

At the same time, DOGE’s favorable short-term RSI and supportive technical indicators make it ideal for immediate gains. Together, they offer promising setups for traders to capture sustained and short-term momentum.

Despite the buy signals for DOGE and AAVE, the market remains volatile, and conditions could shift rapidly. Investors should stay vigilant and informed about evolving market dynamics to navigate these opportunities effectively.