When trading using technical analysis, it is important to use a holistic approach. I like using indicators as a tool on top of my market structure analysis. The Relative Strength Index is one of the most popular indicators because it helps explain when a coin is overbought and oversold. Overbought coins are known to sell off, while oversold coins have growth potential.
One of the most important parts of using the RSI is being able to analyze the calculation itself. I examine the popular cryptocurrency Ripple ($XRP) in the video above. Using the RSI indicator, I could pick specific entry points for coins that allowed for easy 5-10% gains. I draw support and resistance lines on my RSI chart because it greatly indicates the true turnaround points.
The biggest issue with strictly using indicators is that they do not work perfectly. Use the RSI as a tool within your analysis. Could you not use it as your analysis? As always, trade smart and trade without emotions!