Market Strength

Definition ∞ Market strength refers to the overall health and resilience of a particular digital asset or the entire cryptocurrency market, often indicated by sustained price appreciation, high trading volumes, and positive investor sentiment. It suggests a robust demand exceeding supply, leading to upward price movements and confidence among participants. This metric helps assess the underlying stability and growth potential of an asset or market. It is a key indicator for traders and investors.
Context ∞ Analysts frequently assess market strength using technical indicators and fundamental analysis to forecast future price trends for digital assets. Factors contributing to market strength include institutional adoption, favorable regulatory developments, and significant technological advancements within blockchain protocols. Sustained market strength often signals a maturing asset class and increasing investor conviction.