Definition ∞ Downside risk low signifies a market condition where the potential for a significant negative price movement for a digital asset is assessed as minimal. This determination often stems from strong technical support levels, fundamental value, or a broad consensus of long-term holding among participants. It suggests a limited exposure to severe losses.
Context ∞ News articles and market reports frequently identify digital assets with low downside risk, particularly during periods of market uncertainty. Such assets are often seen as more resilient during downturns, drawing attention from risk-averse investors. This assessment provides a valuable indicator of an asset’s perceived stability and protection against adverse price action.