Definition ∞ A market rally precursor is an indicator or event that often precedes a significant upward movement in asset prices. These precursors can include specific on-chain metrics, such as a sustained period of accumulation by long-term holders, a decrease in exchange supply, or a notable reduction in selling pressure. They signal a building foundation of demand and reduced overhead supply, creating conditions conducive to price appreciation. Identifying these early signals helps investors position themselves advantageously.
Context ∞ Crypto news frequently highlights market rally precursors as crucial data points for investors seeking to capitalize on upward trends. Analysts closely monitor these indicators to confirm the strength of a potential market recovery or the continuation of a bull market. The current discourse often focuses on which specific on-chain metrics provide the most reliable early warnings for impending price surges.
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