The market downturn that started last week led many cryptocurrencies to halt their forward momentum. As bears take control of the market, investors are now waiting for a solid entry point.
Cryptocurrencies took a downturn after a few negative macroeconomic prints revealed a higher-than-expected inflation. Last week’s PPI, for example, stalked investors after it came in significantly above forecasts.
This puts us in an interesting position. While the inflationary reports would otherwise point to the Fed maintaining high interest rates, there is a lot of reason to believe that the U.S. Central Bank will prioritize the jobs sector, leading many analysts to predict interest rate cuts for the next three FOMC meetings remaining in 2025.
That makes this week critical. The Fed is set to release minutes from its July meeting, and if the document reveals a stronger bias toward easing monetary policy, it could reignite risk appetite, potentially drawing investors back into crypto markets.
Meanwhile, a few well-known altcoins are entering ‘oversold’ RSI levels, which could point to a potential short-term rebound, especially if market sentiment shifts over the course of the week.
Bonk Inu (BONK)
Bonk Inu reached its 2025 peak of $0.00004081 on July 17, and since then, the memecoin has seen strong dropbacks, down over 45% from that peak. Solana’s memecoin star is now trading at $0.00002174, a key price action zone that served as both support and resistance several times in the past.
Meanwhile, the RSI on a 4-hour timeframe recently reached 31.43, currently at 33.93. This puts $BONK very near “oversold” levels, and the last time it hit that zone, the memecoin went on a 10% bull run before retracting.
Outside macro, Bonk Inu was recently impacted by the launchpad, LetsBonk, losing revenue after rival Pump Fun took over, with LetsBonk’s daily earnings plunging from over $1.5 million in late July to under $50,000 by mid-August.
Pi Network (PI)
The altcoin that gained a lot of attention this year due to its innovative mobile-centered mining, Pi Network, is another cryptocurrency entering ‘oversold’ levels. After going on a 40% rally at the start of the month, reaching a high of $0.4665, $PI reverted back into a multi-week downward trend, falling by over 25% reaching the current value of $0.34 per token.
This drop led the altcoin to reach oversold levels on the RSI on August 18 (4-hour timeframe). Despite occasional bull pressure, $PI is still nearing that zone, currently on a RSI of 29.32.
Quant (QNT)
The native token of the blockchain interoperability project Quant (QNT) is another altcoin reaching oversold levels. The token is currently trading at $103.19 per coin on Binance, down by 22.45% since July 25.
This drop has pushed QNT into technically oversold territory on the 4-hour RSI chart, currently sitting at 29.44. That’s just below the classic threshold of 30, often seen as a signal that selling pressure may be overextended.
Pump Fun (PUMP)
PUMP token, the native asset of the viral meme-driven platform Pump.fun, has seen momentum stall since last week, currently down 32% from August 13. The currency is currently valued at $0.002824.
The community experienced a wave of panic selling after a whale moved $9.19M to OKX, prompting $PUMP to lose 9% in value today.
PUMP token, the native asset of the viral meme-driven platform Pump.fun, has seen momentum stall since last week, currently down 32% from August 13. On a 4-hour chart, $PUMP dipped to near the threshold of 30 on the RSI for two times today, signaling a potential shift in short-term sentiment. It currently sits at 33.47, which suggests that while selling pressure remains strong.
Does an ‘Oversold’ RSI Mean Anything?
But before jumping into these setups, it’s worth asking: Does an ‘oversold’ RSI actually mean anything?
Yes and no—but mostly no. But hey… Maybe?
The RSI indicator is a great tool for measuring momentum, as it compares average gains and average losses over a set period of time. However, just because it’s oversold doesn’t mean it’ll reverse. Nothing is stopping a currency or asset from continuing to fall, no matter how “oversold” it gets, just ask FTT.
Oversold doesn’t really mean “undervalued”, but rather it means that an asset is dropping more than usual. Most times, this can be equated to something like a market dip, panic selling, or even a temporary overreaction to news or whale activity. And bulls tend to pick up on that right after, which leads to value growth. The just RSI flags that intensity, but it doesn’t tell you why it’s happening or whether it’s justified.
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