Definition ∞ Oversold Territory is a technical analysis term indicating that an asset’s price has fallen significantly and rapidly, suggesting that its current valuation may be temporarily undervalued. This condition is often identified using indicators like the Relative Strength Index. It implies that a price rebound could be imminent.
Context ∞ In cryptocurrency news, an asset entering “oversold territory” is often cited as a potential buying opportunity by technical analysts. Reports frequently discuss how this condition, when combined with other market signals, might predict a short-term price reversal. However, oversold conditions can persist, and further price declines are possible without other confirming factors.
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