What is a rsi oversold?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and size of recent price changes on a 0-100 scale. A reading of 30 or below is conventionally labelled 'oversold' — selling pressure has been intense and, historically, price has often been due for at least a short-term bounce.
Oversold does not mean 'cheap' or 'guaranteed to rebound'. It means momentum has stretched to a downside extreme. In strong downtrends RSI can stay oversold for a long time, which is why the signal works best as a mean-reversion cue inside a range or after a sharp, climactic drop rather than as a standalone buy.
Because RSI is bounded and normalised, the same 30 threshold is comparable across every coin, making it a clean way to scan the whole market for assets that have sold off hardest.