Bitcoin Cash has dropped to $329, pushing its relative strength index to 23.80 — a level traders often see as oversold. The cryptocurrency now faces a critical test: either bounce toward $400 or break through the floor at $324 and slide toward $280.
What the oversold RSI means
The RSI reading of 23.80 is well below the 30 threshold that typically marks oversold conditions. In plain terms, the selling has been heavy enough that a short-term rebound becomes statistically more likely. Technical indicators put the odds of a bounce toward the $400 resistance level at about 60%.
That doesn't guarantee a reversal. Oversold readings can persist in a downtrend, and momentum traders often wait for confirmation before calling a bottom.
The $324 danger zone
The immediate risk lies at $324. If Bitcoin Cash slips below that support, the next stop is $280 — roughly a 15% drop from current prices. That would erase gains made over the past month and put the coin near lows not seen since late last year.
The $324 level has held twice in the last two weeks. A third test could be the one that breaks it.
Traders are watching that line closely. Volume has picked up in the last 24 hours, suggesting some are positioning for a move either way. No major news has emerged to explain the slide; the move appears technical in nature.
Whether the bounce materializes or the support gives way, the next few trading sessions should offer a clearer direction.
