The PENGU Spot ETF is the first NFT-based crypto ETF application, as Canary Capital aims to merge NFTs and DeFi—will the SEC approve this groundbreaking move

January 2024 marked a pivotal point in the crypto industry: the US Securities and Exchange Commission (SEC) approved a bunch of 

 (ETFs) after a decade of resisting it. Later that year, several Ethereum (ETH) Spot ETFs were also approved. These early successes encouraged investment funds focused on digital assets to seek approvals for other 

 (AVAX) and other high-cap cryptos have ended up on the SEC's desk in recent months.

Until Mar 20, 2025, one thing had never occurred: an 

-based crypto ETF application. Such a move was thought to border on impossibility, given how stringently and at length the SEC evaluated ETF applications even for established fungible cryptos. And yet, the Canary Capital investment manager submitted an application to the SEC for approval of the first NFT-focused crypto ETF product, the PENGU Spot ETF, triggering a mini-revolution in the emerging space at the junction of crypto and traditional finance.

If approved, this ETF will be the first of its kind in the industry, based on a mix of 

. Many observers expect Canary Capital to struggle mightily for SEC endorsement of its revolutionary product. Nevertheless, the SEC now has a track record of approving crypto ETFs — which raises hopes for both the altcoin ETFs mentioned above and the PENGU Spot ETF application.

The PENGU Spot ETF is a proposed exchange-traded fund (ETF) product introduced by the Canary Capital investment management firm, and is currently awaiting approval by the SEC. 

 on Mar 20, 2025, making this the first crypto ETF product with an NFT component that’s vying for the approval of America's primary financial regulator. The ETF has been registered in the US state of Delaware.

The Pengu Spot ETF's portfolio is envisioned as consisting primarily of PENGU tokens that will make up anywhere between 80% and 95% of total assets held, with the rest allocated to Pudgy Penguins NFTs. Small portions of Solana's SOL coins and Ethereum's ETH tokens will also be included in order to facilitate transactions and liquidity support, as PENGU tokens are mainly issued on the Solana blockchain, and Pudgy Penguins NFTs are an Ethereum-based collection. 

Since Canary Capital will hold these assets and periodically rebalance the portfolio, gas fee payments on Solana and Ethereum will apply, with fees paid in SOL and ETH, respectively.

Launched in 2021 on Solana, the Pudgy Penguins NFT collection consists of 8,888 items, each depicting a cute penguin with a distinct combination of five different traits. In December 2024, the project introduced a related fungible cryptocurrency, the Ethereum-based PENGU token. As of Apr 2, 2025, PENGU is a smaller-cap asset, ranked 191st in the crypto market, with a total 

 of $319 million. In contrast, Pudgy Penguins are among the leading projects in the NFT space, ranked second among all NFT collections, with a market cap of $155 million.

Canary Capital's application to the SEC is unique in two ways: it’s the first ETF with an NFT component, and it marks the first time ETF approval has been sought for a relatively smaller-cap cryptocurrency, PENGU, which isn’t even among the top 100 crypto assets by market cap. All of the other crypto ETF applications approved by the SEC (or currently vying for approval) are based on high-cap, leading assets that are typically ranked within the top 30.

As of Apr 2, 2025, the SEC has had the application for the PENGU Spot ETF application for just two weeks. The regulator has up to 240 days to review such applications, although historically, the SEC has pondered over crypto ETF applications for years. Now, however, the string of Bitcoin and Ethereum Spot ETF approvals in 2024 raises hopes that newer submissions may be subject to an already established evaluation framework — and thus greenlighted much faster.

At the moment, the SEC is also considering spot ETF applications for several high-cap cryptocurrencies, including Dogecoin, Solana, Polkadot, 

 (XRP). If the regulator decides to approve the applications in batch mode — all or several at once — Canary Capital will have reason to hope that its ETF is included.

However, there's been skepticism regarding the PENGU Spot ETF application, with some analysts believing that its chances might differ from those of the larger, more established altcoin ETFs. This isn't surprising, as a PENGU Spot ETF would be a distinct product, being the first NFT-focused ETF. In addition, NFTs have more limited liquidity than fungible cryptocurrencies. 

NFTs may also be harder to valuate objectively. The prices of fungible cryptos are easily sourced from the crypto market, where supply and demand establish their value. In contrast, the limited liquidity and uniqueness of NFTs makes it much harder to price them efficiently.

Moreover, the PENGU token — which will make up most of the proposed ETF — isn't among the most traded assets in the crypto market. Because PENGU has a modest position in the crypto space (along with its origins as a 

), the SEC could view it with more skepticism than it does the leading altcoins.

Naturally, all these factors are just speculation at this point, and we’ll need to wait on the SEC’s initial comments regarding the first NFT-based ETF under their consideration in order to form a more defined view of the product's prospects for approval.

Current impact of the PENGU Spot ETF application on the crypto market

The news of the PENGU Spot ETF application has so far had no appreciable impact on the price of the PENGU token itself. On the day of the application (Mar 20, 2025), the token was trading at around $0.007. Two weeks later, it's still hovering around the same price. 

On the other hand, there's been a modest increase in the average price of Pudgy Penguins NFTs traded on the market: between March 20 and 28, the average price rose by 16% from around $16,450 to $19,120, though it has since retraced slightly to $17,490 as of Apr 2.

Given the modest price effect, investors are likely still cautious about the chances for the PENGU Spot ETF's approval.

However, if it is approved, the broader impact on the crypto market could be far-reaching, as such a step would signify the SEC's openness to both NFT-based ETFs, and ETFs made up of smaller-cap cryptocurrencies, including meme coins. The number of tokenized asset funds that offer NFT-based products would then be likely to increase significantly, facilitating mainstream NFT adoption within traditional financial markets.

An SEC approval of the PENGU Spot ETF may lead to a flurry of further ETF applications based on NFTs in some form. This could even include the first ETFs composed entirely of NFTs. Other crypto asset types — e.g., 

 (RWAs) — may also become candidates for the SEC’s consideration. Furthermore, in the unlikely event that Canary Capital’s PENGU Spot ETF were to be approved ahead of the altcoin spot ETFs currently in the SEC’s pipeline, it would send a very strong signal that those ETF applications are also a sure bet.

The current PENGU Spot ETF application is a pioneering event that may open up opportunities for NFT ETFs and other crypto ETFs based on partial NFT holdings. Although the SEC approved multiple Bitcoin Spot ETFs in early 2024, few people expected an NFT-based ETF to emerge so soon afterward. Probably even fewer expected a meme coin–based ETF to be taken seriously by the SEC. Unique in so many ways, the PENGU ETF flips the entire concept of traditional ETFs on its head.

Canary Capital's attempt to get approval for an NFT-backed ETF is truly a bold undertaking, though observers said the same thing about 

 just a few years ago. Someone needed to become a trailblazer in this area — and Canary Capital has taken up the noble role without hesitation. Now, all eyes are on the SEC as it prepares to weigh in on a product it has never before encountered.

Intermediate

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PENGU Spot ETF: A bold move for NFT investing — or just hype?

In this article, we break down what to expect from Liberation Day and how it could shape the outlook for equities, the US economy and crypto markets.

 April 2, 2025 as "Liberation Day" — a moment he claims will restore America's trade fairness through sweeping reciprocal tariffs. With few concrete details confirmed, global markets remain on edge. Investors are bracing for the economic fallout of a potential trade war, and crypto traders are watching closely to assess the impact on digital assets. In this article, we break down what to expect from “Liberation Day” and how it could shape the outlook for equities, the US economy and crypto markets.

Since returning to the White House in January 2025, President Trump has prioritized reshaping US trade policy with a renewed focus on tariffs. His administration has already announced 

 on all steel and aluminum imports. Many of these actions take effect this week, coinciding with his so-called Liberation Day.

Trump argues that tariffs are a necessary tool to reduce the US trade deficit and force foreign nations to stop what he calls "economic warfare" against the American worker. Treasury secretary Scott Bessent 

 countries with persistent trade surpluses — dubbed the 

 — as primary targets for reciprocal tariffs. These include China, the EU, Canada and Mexico.

However, critics point to the growing risk of a global trade war, with multiple partners already threatening or initiating retaliatory measures. Goldman Sachs recently 

, citing declining business confidence and mounting economic uncertainty. The tariffs, designed to protect US industries, could instead raise prices and weigh on consumer spending.

What to expect from Trump's ‘Liberation Day’ announcement

Trump is expected to reveal his tariff plans in a Rose Garden press conference on April 2. White House press secretary Karoline Leavitt 

 that the president would impose tariffs on "any country that has treated the American people unfairly" — though no nation-specific exemptions have been confirmed. Trump has promised these reciprocal tariffs will be 

While final details remain under wraps, proposals have included both country-wide and sector-specific tariffs. These could range from uniform, percentage-based levies to targeted charges on industries like pharmaceuticals, semiconductors and autos. Trump's advisers, including Trump trade adviser Peter Navarro and commerce secretary Howard Lutnick, claim the new tariffs could generate over $600 billion annually — though many economists dispute this figure.

Delayed tariffs on Canadian and Mexican imports, 

 in early March, are also set to take effect this week. These include taxes on agricultural products, energy goods and automotive components. Trump has also 

 a 25% tariff on imports from countries that purchase oil or gas from Venezuela.

Given the administration's conflicting signals in recent weeks, there's a wide range of potential outcomes. Whether “Liberation Day” ushers in immediate enforcement, additional delays or future negotiation rounds remains to be seen. For now, uncertainty reigns.

Potential impact on the US economy and global markets

Economists warn that broad-based tariffs could lead to slower US growth, higher consumer prices and widening inequality. Goldman Sachs now 

 Trump's trade policies to reduce annual GDP growth to 1.5% from 2%, while the odds of a recession are being raised from 20% to 35%.

Global equity markets have already shown signs of stress. European and Asian indices dipped ahead of “Liberation Day,” while the S&P 500 and Nasdaq-100 

 in March (respectively). Auto manufacturers, tech firms and retailers could be especially vulnerable if tariffs disrupt global supply chains.

There's also the question of the Federal Reserve's response. With inflation risks rising, policymakers may hold off on anticipated rate cuts, further complicating the economic outlook heading into Q2.

How will ‘Liberation Day’ affect the crypto industry?

Crypto markets have mirrored broader risk sentiment over the past quarter, with investors reducing exposure amid macroeconomic turbulence. As of April 1, the 

 is down 16.9% year-to-date. Bitcoin has fallen 10.48%, Ethereum 44.2% and Solana 33% — despite reaching new highs in January on hopes for pro-crypto policies from the Trump administration.

Investor optimism has since cooled as recession risks, inflation concerns and policy unpredictability drive a risk-off mood. Bitcoin dipped to $81,656 over the weekend, marking its weakest Q1 since 2018. Traders remain cautious ahead of “Liberation Day,” awaiting clarity before opening new positions.

“Liberation Day” could further weigh on crypto prices if market volatility increases and capital rotates out of risk assets. However, some analysts believe any resulting sell-off may offer an opportunity to 

 — especially if Trump follows through on crypto-friendly regulation later this year. For now, though, many eyes are on April 2.

With details still unknown, the crypto market remains in a "wait-and-see" phase. “Liberation Day” could mark a turning point — for better or worse — depending upon the scope and execution of Trump's tariff agenda.

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Trump's 'Liberation Day': What it means for crypto markets

Grayscale has filed to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). 

Daily top performer — Compound Finance (COMP)

The S&P 500 rose 0.38% as investors awaited new tariffs amid weak factory data and declining job openings. Gold eased to $3,113 after hitting a record high, driven by profit-taking ahead of Trump's tariff announcement, but remains strong due to safe-haven demand and economic uncertainties. The Coindesk Indices, which tracks the broader crypto market, are up by 1.30%, with Bitcoin and Ether are up 3.10% and 5.19%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is COMP, up 14.3%, following the proposal for the creation of a foundation to ensure consistent leadership and coordination by Compound.

Compound Finance (COMP), launched in September 2018, is a DeFi lending platform that allows users to earn interest on crypto assets. Built on smart contracts, it adjusts interest rates based on supply and demand, connecting lenders and borrowers without intermediaries. In June 2020, Compound decentralized with the launch of COMP and full governance transfer. However, it lacks a core operational pillar. With Compound v4 development and increased community engagement, the need for consistent leadership has grown. To address this, Compound Labs 

 creating a Compound Foundation for structure, clarity, and coordination, similar to other ecosystems like Uniswap.

Check out the latest prices, charts, and data of 

 to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). The fund, which currently holds 79.4% Bitcoin and 10.69% Ethereum, has grown by 478.83% since its launch in 2018. The conversion would allow everyday investors to access the crypto market, covering about 75% of the digital asset market cap. If successful, it would eliminate the current barrier that restricts access to accredited investors. The filing is still in progress, with management fees and other details pending.

Yesterday, BTC spot ETF had a total outflow of $157.8 million, with GBTC seeing a loss of $10.1 million and non-GBTC products losing $147.7 million.

 that its airdrop might be approaching, with a claim page now live. Registration for the airdrop runs from April 2 to April 17, and claims are expected to open on April 22. However, nothing has been officially confirmed yet. Stay tuned for updates.

Beginner

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Grayscale files to convert digital large cap fund into publicly accessible crypto ETF

In this guide, we'll dive into how to trade crypto with the Bybit app, a convenient and feature-rich platform. Explore spot and derivatives trading for beginners on the Bybit app.

Welcome to our step-by-step guide on trading using the Bybit app. In this article, we’ll walk you through everything you need to know — from downloading the app and setting up your account to executing spot, margin and derivatives trades. Bybit is a leading cryptocurrency exchange that offers a fully localized and user-friendly mobile experience, making it easy for both beginning and seasoned traders to manage their investments seamlessly.

First, download the Bybit app from the App Store (iOS) or Google Play (Android). Once you’ve installed the app, open it and select your preferred language.

 and register using your email address or phone number. Complete the verification process by submitting your mainland Chinese ID or passport as required. This step is crucial to ensure your account is secure, and to unlock higher withdrawal limits.

After verifying your identity, head over to the 

 tab to fund your account. You can directly deposit cryptocurrencies like BTC or USDT. Our 

 (UTA) streamlines fund management, allowing you to trade seamlessly across different markets without the hassle of multiple wallets.

Spot trading with Bybit lets you buy or sell cryptocurrencies at current market prices with immediate settlement.

To begin, log in to the app and tap on the 

Choose your desired trading pair, such as BTC/USDC or ETH/USDT, from the list.

 lets you specify a price at which you want to buy or sell. 

Enter the amount you wish to trade, review the details and confirm your order.

Once your order is executed, monitor its status in the 

Bybit has an intuitive interface that displays real-time updates, so you can track your trades anytime with ease. 

How to execute a spot margin trade with the Bybit app

For traders looking to leverage their positions, Bybit offers a spot margin trading feature that allows you to borrow funds to increase your buying power. Start by logging into your account and tapping on 

Choose a trading pair, such as ETH/USDC, which supports margin trading with leverage options of up to 10x. 

Once your trading pair is selected, you’ll need to select the margin amount (e.g., 

 at which you want your limit order to execute.

You’ll also see several other important metrics, such as 

Enter the amount you wish to trade, and then carefully review all of the details.

After confirming your order, your margin trade will be executed. You can track your position in the 

 tab, where you can also set up stop-loss or take-profit orders to manage risk. 

How to trade derivatives with the Bybit app

Bybit also offers derivatives trading, which allows you to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Derivatives include Futures and Perpetual contracts, which can be traded with leverage, sometimes up to 100x.

To start, log in to your account and tap on 

Set your desired leverage (e.g., 50x) and choose between 

 margin modes, based on your risk preference.

 (if using limit or conditional orders) and 

Once you’re satisfied with your parameters, confirm your order and your position will appear in the 

Trading with the Bybit app offers numerous advantages that make managing digital assets both efficient and secure. The platform’s user-friendly design, high-speed execution and comprehensive risk management tools cater to traders of all levels. Our Unified Trading Account (UTA) streamlines fund management by consolidating assets for spot, margin and derivatives trading under one account, which reduces operational complexity and enhances overall efficiency. This streamlined approach lets you focus on strategy rather than logistics.

Additionally, Bybit’s state-of-the-art security measures — such as multi-factor authentication, regular independent audits and cold storage of assets — ensure that your transactions are conducted safely and transparently. With an interface designed to minimize distractions and provide real-time data, you can quickly monitor market movements and adjust positions. 

Our commitment to a secure and reliable trading experience is evident in our continuous improvements and proactive customer support. These features empower you to make informed trading decisions, fostering confidence in your ability to navigate the dynamic crypto market.

Bybit delivers a secure, robust and intuitive mobile platform that simplifies cryptocurrency trading for everyone. In this guide, we’ve explored how to set up an account, fund it and execute various types of trades — spot, margin and derivatives — using a fully localized and user-friendly interface. Our Unified Trading Account and comprehensive risk management tools ensure a smooth trading experience so you can focus on growing your investments.

Looking ahead, Bybit remains dedicated to innovation and excellence in the crypto industry. We continually refine our platform, based on user feedback and market trends, ensuring that you have access to the latest tools and features. Our commitment to transparency and security underpins everything we do as we build trust and empower traders. 

How to trade spot crypto on Bybit app.png

How to trade with the Bybit app

Indicators

Investing

Trading

Looking to time your entry and exit into the crypto market? Avoid selling the bottom and buying the top with the WIlliams %R indicator!

 will tell you the story, while technical analysis is what signals when to get into and out of a trade. 

 will help you see the direction of the current trend, and when the market is overbought and oversold. The Williams %R is a tool that helps traders identify trend direction, and signals when to buy and sell. In this article, we’ll learn about this relatively unknown indicator, as well as four strategies to trade with it.

Williams %R is a momentum indicator used in technical analysis that measures whether a crypto asset is overbought and due for a correction, or oversold and about to begin a new rally.

Williams %R, also referred to as %R or Williams Percent Range, was developed by Larry Williams and first introduced in his 1979 book, “

How I Made One Million Dollars … Last Year … Trading Commodities.

 In 1973, the United States formally removed itself from the gold standard and inflation was high and rising. As a result, many commodities experienced strong trends, similar to the cryptocurrency trends we’re witnessing today.

When a market experiences strong trends, you want to utilize momentum indicators and tools to help you identify trading opportunities. Williams %R is a momentum indicator that generates easy-to-follow trading signals which allow traders to time their entries and exits.

In essence, the calculation determines how close the current price is to a recent high or low. For example, a reading of −10 suggests the asset is within the top 10% of the range. On the other hand, a reading of −90 suggests the asset is within the bottom 10% of the range.

The %R is a bounded oscillator. This means (in this case) that the output values cannot be greater than zero or less than −100. Bounded oscillators are excellent tools for providing traders signals of overbought or oversold assets, as the signals are easy to read.

With Williams %R, a reading above −20 is considered to be overbought. If a cryptocurrency goes above −20, then it’s approaching its recent highs and may be due for a correction.

On the other hand, a reading below −80 is considered oversold, suggesting a bullish reversal may occur soon because the market has sold off hard.

, the Williams %R has both advantages and limitations.

First, as a bounded oscillator, Williams %R makes reading overbought and oversold signals fairly simple: −20 represents overbought and −80 represents oversold. No additional math calculations are needed to interpret when a crypto asset has become overbought or oversold.

The biggest limitation to a bounded oscillator is that markets can remain overbought or oversold for extended periods of time. For example, if the Williams %R is vacillating between −.05 and 0, it simply means that the market is hovering near its high for the defined lookback period.  

To put it another way, if the market is in a strong uptrend, it could experience %R readings in overbought territory for an extended period of time, with the opposite being the case for downtrends.

Another limitation to the Williams %R is the scale it uses. I believe %R was created with uptrends in mind and, therefore, intended for use in determining how close to the range high the market is. Thus, the market will always be a percentage off from the high, which is why Larry Williams multiplies the ratio by −100.

However, the scale is counterintuitive when you’re reading it. As humans, we easily understand uptrends and positive numbers. Negative numbers take more mental capital for us to comprehend. Therefore, with nearly all readings of the Williams %R in negative territory, it requires more energy for us to interpret the numbers.

Williams %R is a versatile oscillator, and yields many uses. It has a variety of patterns which provide fruitful buy and sell signals. Below, we’ll share four strategies that a crypto trader can use with the Williams %R indicator.

One of the advantages of the Williams %R is its clearly defined overbought and oversold levels.

When an asset is oversold and below −80, a trader can buy once the market crosses back up above −80. In overbought conditions, a crypto trader can wait to sell until the crypto market crosses below −20. The chart above is illustrated with green vertical lines representing buy signals, and red vertical lines representing sell signals.

We can add another layer to this simple strategy by filtering trades solely in the direction of a trend. The goal of this refined strategy is to only take advantage of signals that align with the larger trend’s direction, while ignoring counter-trend signals.

Above, we’ve removed the short signals, filtering only for buy signals as the Bitcoin trend is up. Notice that when Williams %R drops below −80 into the oversold region, a rally follows soon thereafter.

To sum up this strategy, a trader would buy in an uptrend when the %R crosses above −80, while ignoring all short signals. In a downtrend, the trader would short when %R crosses below −20, while ignoring all long signals.

Another way to use the %R is to focus on the midline at −50. 

Above, we’ve marked the middle of the oscillator with a dotted line at −50. When the Williams %R moves above this midline, it signals that the trend is up and may continue to move higher.

On the contrary, when the %R line is below the −50 midline, it suggests a weak market that may weaken further.

Obviously, the %R line will cross back and forth between bullish and bearish territory. But generally speaking, it stays contained within one zone for a while. Therefore, a trader could look to initiate positions when the indicator’s line crosses −50 in either direction.

Bullish and Bearish Oscillator Divergence

There are times when the oscillator will move independently of price action, creating divergence. When you spot this happening, it signals that a trend change may soon appear.

For example, on the 2-hour Bitcoin chart above, the price is trading higher from September 13–21. After a brief correction beginning September 21, Bitcoin rallies again to reach a new high.  

However, the %R oscillator does not rally to a new high. This divergence, with the oscillator not confirming the new high in price, is a bearish signal that suggests a correction may be at hand. In fact, within a few hours, Bitcoin fell 20%.

The opposite can also occur with bullish divergence.

This 4-hour Bitcoin chart from April 2021 illustrates an instance of bullish divergence. Bitcoin’s price falls going into the first low on April 23. The Williams %R oscillator is deeply oversold, and Bitcoin rallies a small amount.

Then, Bitcoin corrects lower again to reach a new low. However, the %R oscillator doesn’t  — which creates bullish divergence. Bitcoin goes on to rally 30% over the next several days.

There are times when the market is so strong that corrections are very shallow, tending not to become oversold. It’s during these strong markets that you want to be positioned well. The failure swing strategy can help.

On the Bitcoin daily chart above, you can spot when the Williams %R line is trying to correct lower. However, the market is so strong that the %R line barely drops below −50, and doesn’t reach the −80 oversold region.

This is a bullish failure swing because the swing low doesn’t reach oversold levels. If you spot situations like these on a chart, look for opportunities to position yourself to the long side.

With the benefit of hindsight, we can now see that Bitcoin rallied nearly 3× over the next four months as a result of this bullish energy.

Williams %R vs. Alternative Trading Indicators

As a bounded oscillator, there are some similarities between the Williams %R and other oscillators. It’s important to understand the similarities and differences between these oscillators so you can determine which one will work best for you.

Williams %R vs. Fast Stochastic Oscillator

The Williams %R calculates the market’s current level relative to the highest high for the lookback period. On the other hand, the fast stochastic oscillator, which moves between 0 and 100, compares the market’s current level to the lowest low. As a result, these two oscillators essentially do the same thing, and appear very similar on charts.

When you inspect these two formulas, you’ll see they look very similar — with two main differences. The first difference, which we’ve already discussed, is that %R compares using recent highs, while fast stochastic compares using recent lows.

The second main difference is the multiplier. Due to this discrepancy, the %R has a limited output range of 0 to −100, while the fast stochastic oscillator has a range of 0 to +100.

 indicator. Similar to fast stochastic, the RSI indicator also measures between 0 and 100. However, the similarities end there.

The RSI calculation involves averaging the “up” days against the “down” days. In essence, it’s figuring out the strength with which the crypto market rallies on its bullish days vs. its weak  corrections on bearish days. RSI is used to calculate how much a market moves on average.

Notice the difference with the %R, which is a pure price comparison against a range high or low. The Williams %R is calculating how close the current price is to the range high and low.

As a result, you’ll tend to receive completely different values when comparing the RSI to the Williams %R.

Within the Williams %R in the example above, oversold readings below −80 are easy to come by. However, the corresponding RSI readings never do reach the oversold level of 30. As 

 is in an uptrend at the time, its relative strength is apparent in the RSI oscillator, with correspondingly high readings.

The Williams %R tool is excellent for helping traders clearly identify overbought and oversold levels for cryptocurrencies. %R is also versatile, as there are four different strategies a trader can deploy when using the oscillator, from simple “buy the dips” to swing failures.

Though the %R scaling isn’t the most intuitive, traders who have worked with stochastic or RSI oscillators will be familiar with how to use Williams %R as an indicator of overbought and oversold markets.

How to Use Williams %R to Identify if a Crypto is Overbought or Oversold

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