The Relative Strength Index (RSI) is a technical analysis indicator created by J. Welles Wilder in 1978.

The tool was designed to measure when assets reach overbought or oversold conditions, along with the strength, speed, and change of price movements.

RSI values move according to the direction of the price. It acts as a visual gauge to the strength of price action. When or if the RSI goes above 70 or below 30, it is considered overbought or oversold, respectively.

When the RSI reaches these key levels, it will signal that an asset is oversold or overbought and that a trend may be coming to an end.

It’s at this point when a reversal is possible. During the strongest trends, however, cryptocurrencies can stay oversold or overbought for an extended period of time.