Market floor fragility describes a condition in digital asset markets where the lowest price point for an asset or collection of assets is easily breached due to weak buying support. This indicates a lack of strong demand at current price levels, making the asset susceptible to further price declines. It often results from insufficient liquidity or waning investor interest.
Context
This term is frequently applied to NFT collections or less liquid altcoins where price discovery is highly dependent on a small number of buyers. News reports may highlight market floor fragility when discussing the sustainability of asset valuations or the risk of rapid price depreciation. It signals a vulnerable market structure.
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