What is the Relative Strength Index (RSI)

Relative Strength Index (RSI) is a very important indicator in cryptocurrency trading . RSI is a technical analysis tool that measures the strength and weakness of crypto asset price trends over a certain period of time.

By moving on a scale from 0 to 100, RSI helps traders identify conditions where an asset may be overbought or oversold . Generally, RSI values ​​above 70 are considered to indicate overbought conditions, while values ​​below 30 indicate oversold conditions.

In practice, RSI can be used to help determine the right timing to enter or exit a trading position. When the RSI shows a crypto asset is overbought, this may be a signal for traders to consider selling, as there is a potential price decline.

Conversely, if the RSI shows oversold conditions, this can be interpreted as an opportunity to buy, in the hope that the price will rise. Therefore, RSI becomes a very useful tool for crypto traders to make decisions based on deeper technical analysis.

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