What alt coins are poised to plummet

Important Clarification

It’s not possible to know which altcoins “will” significantly decline; no screen can guarantee future price moves. What we can do is identify coins that, based on common technical and risk factors, have a higher probability of being vulnerable to a pullback or deeper decline. The filters below are designed with that goal.

Screening Filters

1. Market Cap: 50M – 5B

   • Purpose: Focus on small to mid-cap altcoins that are more volatile and thus more likely to experience sharp declines.
   • Rationale:
     • Very large-cap coins (e.g., top-tier layer-1s) tend to be more liquid and relatively more stable; they can still drop, but extreme crashes are less common than in small caps.
     • Very tiny microcaps (< $50M) can be illiquid, easily manipulated, and hard to analyze reliably.
     • The 50M–5B range captures riskier, more volatile coins where big runs and big drawdowns are common.

2. RSI Category: Overbought / Moderate

   • Purpose: Identify coins that are still relatively strong or stretched to the upside, where downside risk may be building.
   • Rationale:
     • Overbought or moderately high RSI typically indicates recent strong buying pressure.
     • Assets that have been aggressively bought up can become vulnerable to mean reversion (prices drifting back down toward more “normal” levels).
     • This aligns with your goal of finding coins that may be at risk of a significant decline after a strong run.

3. Technical Indicator: RSI_14 >= 65

   • Purpose: More precisely target altcoins that are close to or in overbought territory.
   • Rationale:
     • An RSI (14-day) of 70+ is classically “overbought”; 65+ is often treated as early overbought / extended.
     • Coins with RSI ≥ 65 have strong recent upside momentum, which historically increases the chance of:
       • Profit-taking by early buyers
       • Momentum reversals
     • This indicator directly supports the idea of screening for potential topping or exhaustion zones.

4. Moving Average Relationship: PriceBelowMA5

   • Purpose: Find altcoins where short-term price momentum has already started to turn down.
   • Rationale:
     • The 5-day moving average (MA5) is a very short-term trend gauge.
     • When the current price drops below the 5-day moving average, it often signals:
       • Initial weakness after an uptrend
       • Early stages of a possible trend reversal
     • Combining this with high RSI focuses on coins that ran up hard but have just started to roll over, which matches “likely to experience a decline” better than coins still powering straight up.

5. 24h Price Change: ≤ -2% (down between -2% and -100%)

   • Purpose: Capture altcoins that are already showing recent negative price action.
   • Rationale:
     • A negative 24h change (at least -2%) means selling pressure is currently present.
     • You’re not just looking at theoretically overbought charts; you’re targeting those where the market has started to sell.
     • This makes them more relevant to your query, as you’re searching for coins likely to continue or deepen their decline, not ones that are still pushing to new highs intraday.

6. 1-Month Price Change: ≥ +30%

   • Purpose: Focus on altcoins that have rallied strongly in the past month, now potentially overextended and ready to correct.
   • Rationale:
     • A ≥30% gain in a month is a significant move, especially in combination with high RSI.
     • Historically, assets that move up quickly are at higher risk of:
       • Sharp mean-reversion pullbacks
       • Larger corrections if sentiment shifts
     • This filter ensures you’re looking at coins that have “room to fall” because they’ve recently moved up a lot.

Why These Results Match Your Intent

• The screen targets volatile altcoins (small–mid caps) where big moves—up and down—are common.
• It focuses on coins that have already run up hard over the last month (+30% or more) and are now technically extended (RSI ≥ 65).
• It then narrows further to those where short-term momentum has turned negative (price below 5-day MA and at least -2% in the last 24h).
• This combination is consistent with identifying altcoins that are at elevated risk of further downside, given:
  • Overextended prior gains
  • Overbought conditions
  • Emerging short-term weakness

You should still treat any output as candidates for further research, not guaranteed decliners, but these filters are well aligned with the profile of altcoins that are more likely to experience a significant drop after a strong, extended move up.