3 Oversold Altcoins That Could Recover Soon

Some altcoins are showing overselling signals after strong declines, and three prominent coins - Solayer (LAYER), Biswap (BSW), and Voxies (VOXEL) are considered potential candidates for recovery. LAYER has dropped 19% this week after a 45% decline, while BSW and VOXEL have fallen over 15% and 25.5% respectively.

All three tokens have RSI indices below 25, indicating extremely strong selling pressure. Their relative strength (RS) indices show they have performed worse than the overall market. Although there is no guarantee of a recovery, these technical conditions often precede short-term recoveries if market sentiment begins to improve.

Solayer (LAYER)

Last week, Solayer (LAYER) dropped 45% in just a few hours, losing nearly 350 million USD in market capitalization and erasing months of price increases.

This decline was triggered by thin liquidation, chain liquidations, and selloffs from "whales" - just days before unlocking 26.5 million LAYER on 05/11.

LAYER has dropped 19% in the past seven days, and technical indicators show severe overselling conditions. Its RSI is currently 23.35, much lower than the 30 threshold typically signaling oversold territory.

Meanwhile, its relative strength (RS) index compared to the overall market is -0.47, indicating LAYER is performing significantly worse than other coins.

This combination often precedes a short-term recovery, as overselling pressure may exhaust itself. Although no recovery is guaranteed, the current situation suggests a potential rebound if market sentiment stabilizes and buyers participate.

Biswap (BSW)

Biswap (BSW) has dropped over 15% in the past 24 hours, facing strong selling pressure amid weak conditions in medium-capitalization altcoins.

BSW's RSI is currently 23.95 - much lower than the 30 level indicating oversold conditions. This suggests the altcoin may be about to recover after a strong selloff.

Its relative strength (RS) index is -0.14, showing BSW is performing slightly worse than the overall market, but not severely.

This combination - deep oversold RSI and moderate negative RS - often marks a short-term surrender point. If overall market sentiment improves or buyers participate at these low prices, BSW could see a recovery, especially as short-term traders seek to leverage a medium recovery.

Voxies (VOXEL)

Voxies (VOXEL) is the native utility token of Voxie Tactics, a free-to-play 3D tactical RPG inspired by classic style combined with modern features.

VOXEL is currently down 11% in the past 24 hours and 25.5% in the past week, with a market capitalization of around 16.7 million USD. The RSI has dropped to 24.9, indicating the token is in oversold territory and may be approaching a technical recovery point.

Additionally, its relative strength (RS) index compared to the overall market is -0.2389, showing VOXEL has performed poorly but not severely lagging behind other assets.

This combination - deep RSI and moderate poor performance - often creates conditions for a short-term recovery, especially if selling pressure decreases or player participation increases.