Relative Strength
The analysis of a relative strength chart allows the price performance of two separate cryptocurrencies to be compared.
It is a technical analysis tool that allows you to quantitatively compare the price trend of one crypto to the price trend of a second cryptocurrency (denominator) over a defined time interval.
The most commonly used denominator is Bitcoin: it is in fact the cryptocurrency with the highest market capitalisation and is considered as the reference index for the cryptocurrency market.
This means that if an upward (or bullish) trend is identified on a relative strength chart, the performance of the cryptocurrency being analysed has outperformed the denominator price.
Conversely, if a downward (or bearish) movement is identified, the price of the crypto has underperformed the value of the reference index.