Market Momentum Decline

Definition ∞ Market momentum decline describes a weakening of the upward or downward force driving asset prices in a particular direction. This indicates that the prevailing trend is losing strength, often signaling a potential reversal or a period of consolidation. It is observed when trading volume or price velocity diminishes. This can precede a shift in market dynamics and investor sentiment.
Context ∞ News analyses in the digital asset space frequently refer to market momentum decline to explain price stagnation or impending trend changes for cryptocurrencies. Technical analysts use various indicators to spot this weakening, which can inform investment decisions. Reports may link this decline to factors such as reduced buying pressure or increased selling activity.