Definition ∞ Cryptocurrency indicators are quantifiable metrics or data points used to assess the health, activity, and sentiment within the digital asset markets. These tools provide insights into price movements, trading volumes, network usage, and investor behavior. Analysts employ these indicators to evaluate market conditions and forecast potential future price trajectories. They assist in comprehending complex market dynamics.
Context ∞ News articles regularly reference cryptocurrency indicators to explain market shifts, predict upcoming trends, or justify investment strategies. Common indicators include moving averages, relative strength index, and on-chain metrics like active addresses or transaction counts. The interpretation and predictive power of these indicators remain subjects of continuous analysis and debate among market participants.