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Crypto Speak: Oversold & Overbought
These are basic concepts in financial markets. It's simple: we say "oversold" about an asset (in our case, a cryptocurrency) that is trading below its "fair" value. This is what we call an undervalued coin whose price has fallen due to an active selling.
We apply the concept of "overbought" to coins that, on the contrary, are clearly trading above their "fair" value. This happens when a cryptocurrency is bought in an excessive and "unjustified" way, when a trendy news item is made public.