Definition ∞ A market conviction metric is an analytical tool designed to quantify the strength of belief or confidence among market participants regarding a particular asset’s future price direction. These metrics often combine various data points, such as trading volume, open interest, and sentiment indicators, to assess the collective resolve of buyers or sellers. It helps observers gauge underlying market pressure.
Context ∞ In cryptocurrency news, market conviction metrics are frequently employed by analysts to interpret price movements and predict potential reversals or continuations. Indicators like funding rates, whale activity, or social media sentiment are used to determine if a price trend is supported by strong participant belief or is more speculative. High conviction often accompanies sustained price action.
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