Lately, questions about RSI are coming in, so I wanted to give a brief explanation. RSI is actually a pretty simple but effective indicator, moving between 0-100 and showing the momentum status of an asset. Most traders look at the 30 and 70 levels, which are considered oversold and overbought signals.

But the interesting part starts here. There is a situation called negative divergence in RSI, which is really worth paying attention to. If the price makes a new high but RSI stays at a lower level, it indicates that the price is likely to enter a downtrend. Conversely, if the price makes a new low but RSI remains high, this is called positive divergence and can signal a potential upward move.

These divergences are important because they can give an early warning that price movements might reverse. But you need to be careful; they are not sufficient on their own. You should evaluate them together with other indicators, support and resistance levels, and the overall market environment. Relying solely on negative divergence in RSI can be risky.

My advice is to learn technical analysis in depth and use multiple indicators in combination. This way, you can get more reliable signals and make more informed decisions. Tracking these kinds of indicators and analyzing charts on Gate is quite easy, I recommend giving it a try.