Definition ∞ A market strength indicator is a tool or metric used to assess the underlying buying or selling pressure within a cryptocurrency market. These indicators provide quantitative insights into the intensity of market participation and the conviction behind price movements. Examples include trading volume, on-chain transaction counts, active addresses, or specific technical analysis oscillators. They help determine if a price trend is supported by genuine market activity or is merely a speculative fluctuation.
Context ∞ News reports often reference market strength indicators to provide context for price action and to gauge the sustainability of trends. A strong indicator reading typically supports bullish or bearish narratives, while a weak reading might suggest a reversal is near. Understanding these metrics is crucial for evaluating the health and direction of digital asset markets.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
