Definition ∞ Market Excess Cleared describes a condition in financial markets where an imbalance between supply and demand has been resolved, leading to a more stable and efficient price discovery. This typically occurs after periods of oversupply or undersupply are absorbed, often through significant price adjustments. In cryptocurrency markets, it can refer to the absorption of selling pressure or the fulfillment of strong buying interest.
Context ∞ The concept of market excess cleared is often discussed in relation to market cycles and the potential for a new price trend to establish itself. A key debate involves identifying reliable indicators that confirm the clearance of excess, such as declining trading volumes after a large price movement. Future analysis will continue to focus on on-chain metrics and order book depth to better assess when market imbalances have genuinely resolved.
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