RSI, or Relative Strength Index, is a momentum oscillator that measures the speed and change of price movements in cryptocurrencies. It is used by traders to identify overbought or oversold conditions in the market. The RSI ranges from 0 to 100, with readings above 70 typically indicating that a cryptocurrency is overbought and due for a correction, while readings below 30 suggest that a cryptocurrency is oversold and may be due for a rebound.
Traders use the RSI to make decisions on when to buy or sell cryptocurrencies. When the RSI is above 70, traders may consider selling their holdings as the price may be due for a downturn. On the other hand, when the RSI is below 30, traders may see it as an opportunity to buy as the price may be oversold and poised for an upturn.
Overall, the RSI is a valuable tool for traders in the cryptocurrency market to help them make informed decisions based on the momentum of price movements.
