Definition ∞ Asset price recovery describes the upward movement of a digital asset’s value after a period of decline. This indicates a reversal of previous downward trends, often signaling renewed investor confidence or improving market conditions. Such a rebound can restore an asset to its prior valuation levels or establish new price floors.
Context ∞ Crypto news frequently highlights asset price recovery following market corrections or downturns. Analysts examine trading volumes, on-chain metrics, and macroeconomic factors to assess the sustainability of such a rebound. Understanding asset price recovery is crucial for evaluating market health and identifying potential opportunities in the digital asset space.