What Technical Indicators Are Often Cited by “Herding” Traders during a Crypto Sell-Off?
Herding traders often rely on simple, widely-followed technical indicators that reinforce the collective selling narrative. Common indicators include the breach of major support levels, such as key moving averages (e.g.
200-day MA). A rapid drop in the Relative Strength Index (RSI) below 30 signals an "oversold" condition, which paradoxically can trigger more selling as traders anticipate further downside.
Volume indicators showing a surge in selling volume also confirm the collective action.