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In crypto, “oversold” refers to a situation in which a cryptocurrency’s price has dropped significantly and is believed to be lower than its intrinsic value. This may occur due to a number of factors, such as a general market downturn, negative news or sentiment about the cryptocurrency, or increased selling pressure.

When a cryptocurrency is oversold, it may be seen as a buying opportunity by some investors, who believe that the price will eventually recover and that they can make a profit by purchasing the cryptocurrency at a lower price.