Relative strength is a technical analysis metric that compares the price performance of a particular asset or security against a benchmark index or another asset. It assesses whether an asset is outperforming or underperforming its comparison over a specified period. A higher relative strength indicates that the asset is exhibiting stronger price momentum. Traders and investors use this indicator to identify assets with superior market performance.
Context
In cryptocurrency analysis, relative strength is a widely applied indicator for evaluating the performance of individual digital assets against Bitcoin, Ethereum, or the broader crypto market index. Analysts frequently discuss which altcoins are showing superior relative strength, suggesting potential for continued growth during market uptrends. Conversely, underperformance indicates weakness and potential for further decline. Monitoring relative strength helps investors allocate capital to assets demonstrating stronger price action within the volatile digital asset landscape.
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