Overbought

Overbought refers to a situation where an asset’s recent trading price surpasses its perceived intrinsic or fair value, indicating a potential upcoming decline in price. However, it’s important to note that an overbought condition can persist for an extended period, and an immediate price decrease is not always certain in the short term. Traders often rely on technical indicators like the relative strength index (RSI), Bollinger Bands, trading volume, and other metrics to identify assets that may be overbought or oversold.