Market Fatigue Signals

Definition ∞ Market fatigue signals are technical indicators suggesting that a prevailing price trend is losing strength. These signals often appear as decreasing trading volume during upward or downward movements, narrowing price ranges, or divergence between price action and momentum oscillators. They indicate a reduction in conviction among market participants, suggesting a potential reversal or a period of consolidation.
Context ∞ The current discussion around market fatigue signals frequently involves analyzing on-chain data, such as declining transaction counts or reduced network activity, alongside traditional technical analysis. Traders and analysts closely monitor these indications to anticipate shifts in market dynamics and adjust their strategies accordingly.