Here is some useful information for those who are just starting out in crypto assets:
The RSI is an indicator that ranges from 0 to 100. The closer it is to 0, the better the time to buy the asset, as it has already experienced a sharp decline. The closer it is to 100, the lower it is recommended to buy the asset, as it has already appreciated significantly.
The RSI is simply a mathematical representation of the concept “buy low, sell high”.
That is why it is very important to analyze the fundamentals of the assets beforehand, because even with the RSI very close to zero, a crypto asset can still plummet, as was the case with the fall of Terra (LUNA) and several others.
However, the RSI has been working very well for established crypto assets, such as Bitcoin (BTC) and Ethereum (ETH), so it cannot be left out of your analyses.
The Moving Average is an indicator that calculates the average price of an asset based on a certain number of periods. There are several types of moving averages with different characteristics, such as the Simple Moving Average, Exponential Moving Average, Weighted Moving Average, and others.
The MVRV measures the current price of a crypto asset in relation to the average value acquired by investors.
The higher this ratio, the more investors will be willing to sell. For example, if the MVRV value is 100% (or 2), if all investors sold their assets, they would have an average profit of 100%, or twice their initial investment.
Therefore, the higher the MVRV, the less advisable it is to buy a crypto asset. The lower the MVRV, the less risky the investment will be.
Observing the movement of an asset's volume is very important to predict its future price. In this sense, volume is often used to confirm an asset's trend.