5 Overbought Cryptocurrencies That Are At Risk of Falling

NEM (XEM), Beam (BEAM), Reef (REEF), Gains Network ($GNS), and Sun ($SUN) are all cryptocurrencies that have seen a huge surge in price and are currently considered overbought.

Cryptocurrency prices have seen a significant surge in recent times, with some digital currencies becoming overbought. Here's a closer look at five crypto assets that might be due for a price correction:

1. NEM (XEM) price has seen a huge surge and is currently considered one of the most overbought cryptocurrencies. While blockchain technology underpins its performance, many investors feel that NEM’s price is now inflated. The price gains are driven more by speculation than sound logic and have raised concerns among analysts that the growth is not expected to last.

2. Beam’s advanced features are priced in and might be too high

Beam (BEAM) is known for its superior privacy capabilities, which allow users to remain anonymous when using this digital currency. However, despite its advanced features, Beam’s price has risen too high, exceeding its fair value according to many analysts. Experts warn that this price spike may be followed by a correction or price drop.

3. Reef has great liquidity in excess

Reef (REEF) is one of the leading cryptocurrencies in the decentralized finance (DeFi) sector, offering high liquidity or ease of buying and selling. However, even with its excellent technology, Reef’s price increase has been too rapid and has outpaced its utility. This places Reef’s price in the overbought zone, and a price drop is likely to adjust it to its true value.

4. Gains Network’s $GNS gains bring coins with exclusions

Gains Network (GNS) has been rewarding its investors with huge gains in recent months. However, the rapid price increase has now placed GNS in the overbought zone. Analysts warn that this growth may not be sustainable, and a price correction could be on the horizon.

5. Sun $SUN reaches buy saturation point despite being the best DeFi token

Sun (SUN) has emerged as one of the most promising DeFi tokens with strong performance, However, its overbought price indicates that SUN is now in the overbought zone. Investors are advised to be cautious as this price spike is driven more by market sentiment than strong fundamental factors.