Digital asset momentum refers to the rate and strength of price movement for a digital asset over a specified period. This concept measures the velocity of price changes, indicating whether a trend is accelerating or decelerating. Positive momentum suggests sustained buying pressure, while negative momentum indicates selling pressure. It is a key technical analysis tool.
Context
Digital asset momentum is a critical analytical tool in cryptocurrency news, helping readers interpret market charts and price action. Reports on significant price rallies or declines often refer to momentum indicators to explain the underlying forces. Understanding momentum provides valuable insight into the psychological and technical aspects driving digital asset markets and investor behavior.
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