It is an important indicator used in Technical Analysis where in quantum of recent price changes are used to ascertain oversold or overbought conditions for stocks and other assets. RSI (Relative Strength Index) value of 70 and above indicates overbought or overvalued situation and may indicate trend correction and price adjustments downwards.

RSI reading of 30 indicates undervalued situation. In Cryptocurrencies, RSI indicator is based on crypto's price change and speed of this change.