Avoid trading these 2 cryptocurrencies this weekend

2025-09-05 13:16:26

Abstract generation in progress

As the weekend approaches, investors eyeing the cryptocurrency markets may want to consider a few key indicators to guide their trading decisions.

One of the most important is the Relative Strength Index (RSI), a momentum gauge that measures recent gains and losses on a 0–100 scale

Currently, some assets are flashing warning signals, as RSI readings above 70 often indicate overbought conditions and a higher risk of a pullback.

With this in mind, Finbold has identified two cryptocurrencies in the overbought zone that traders may want to avoid this weekend.

PAX Gold (PAXG)

PAX Gold (PAXG) is a cryptocurrency backed by physical gold, designed to give investors exposure to the precious metal without the need for storage

On the surface, its performance appears stable, with the token trading at $3,558.12, almost unchanged over the past 24 hours. However, beneath this calm surface lies a concerning signal.

The RSI reveals a different picture: from a neutral 49.06 on the 15-minute chart, momentum has steadily climbed to 76.21 on the 24-hour timeframe

PAXG price and RSI. Source: Coinglass**PAXG price and RSI. Source: CoinglassThis rise suggests that while price action has been flat, the asset is quietly slipping into overbought territory.

Redstone (RED)

Redstone (RED), a crypto project focused on decentralized finance and scalable blockchain data solutions, has seen explosive growth

The token is priced at $0.6821, surging 65.44% in the last 24 hours, making it one of the strongest performers in the market.

But the rally is showing signs of exhaustion. RSI readings are stretched, 64.89 (15-minute), 77.42 (12-hour), and 75.92 (24-hour)

RED price and RSI. Source: CoinglassRED price and RSI. Source: Coinglass**RED price and RSI. Source: CoinglassCoupled with a 3.44% hourly decline, the data suggests traders are beginning to take profits. With momentum overheated, the token faces an increased risk of a sharp retracement in the near term.

Featured image via Shutterstock

Featured image via ShutterstockFeatured image via Shutterstock

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.