Indicator Overview

The Velocity RSI is an advanced momentum oscillator that refines the traditional Relative Strength Index (RSI) by incorporating the equal-weighted memecoin index’s price velocity, calculated using a lookback and a running moving average (RMA) smoothing. This index compiles the following top 10 memecoins by market capitalization (as of December 2025):

1. Dogecoin (DOGE)

2. Shiba Inu (SHIB)

3. Pepe (PEPE)

4. Official Trump (TRUMP)

5. Bonk (BONK)

6. Pudgy Penguins (PENGU)

7. FLOKI (FLOKI)

8. Fartcoin (FARTCOIN)

9. dogwifhat (WIF)

10. Book of Meme (BOME)

The index price is calculated as the average of these 10 memecoins’ prices (equal weighting, no rebalancing specified here).

It measures the speed and direction of price changes relative to recent highs and lows in the memecoin sector, scaled to a 0–100 range.

How To Use

The Velocity RSI oscillates around a 50 midline, with values above 80 (red dashed line, red fill) signaling overbought conditions in the memecoin index, often preceding sector-wide pullbacks, ideal for profit-taking or reducing exposure. Values below 20 (green dashed line, green fill) indicate oversold conditions, typically aligning with buying opportunities during dips. Historically, red peaks mark speculative tops driven by hype, while green troughs signal undervaluation across the basket. Traders can buy (or increase exposure) on green dips below 20 and sell on red spikes above 80. Investors may accumulate positions in these top memecoins during oversold periods and reduce exposure in overbought zones, leveraging the indicator’s sensitivity to the extreme cyclical momentum of this highly volatile and sentiment-driven asset class for precise timing.