Indicator Overview

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

1. Ethereum (ETH)

2. XRP (XRP)

3. BNB (BNB)

4. Solana (SOL)

5. Cardano (ADA)

6. Chainlink (LINK)

7. TRON (TRX)

8. Monero (XMR)

9. Avalanche (AVAX)

10. Litecoin (LTC)

The index price is calculated as the average of these 10 altcoins’ prices (equal weighting).

It measures the speed and direction of price changes relative to recent highs and lows in the altcoin 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 altcoin 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 across the basket, while green troughs signal undervaluation. 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 altcoins during oversold periods and reduce exposure in overbought zones, leveraging the indicator’s sensitivity to the cyclical momentum of this utility-driven and volatile asset class for precise timing.