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Market Stagnation

Definition

Market stagnation describes a period in financial markets, including digital asset markets, characterized by minimal price movement, low trading volumes, and a general lack of significant market activity. During such times, asset prices tend to trade within a narrow range, indicating investor indecision or a waiting period before a clearer trend emerges. This phase often precedes either a substantial upward or downward price movement. It reflects a pause in market momentum.