Definition ∞ A market fatigue signal indicates a diminishing interest or capacity among market participants to sustain a current price trend. This signal suggests that the prevailing buying or selling pressure is weakening. It often appears through reduced trading volume, smaller price movements, or divergence in technical indicators.
Context ∞ In digital asset markets, a market fatigue signal can precede a trend reversal or a period of consolidation. For instance, declining transaction counts or stagnant funding rates during an uptrend might suggest buyer exhaustion. Recognizing this signal is important for investors seeking to anticipate shifts in market momentum and adjust their positions in response to crypto news.