Definition ∞ A Market Strength Signal is an indicator or observable trend within the digital asset markets that suggests a prevailing positive sentiment and potential for upward price movement. This can manifest through various metrics, including sustained buying pressure, increasing trading volume, rising open interest in derivatives, or significant institutional inflows. Such signals provide analytical data for market participants.
Context ∞ Crypto news frequently highlights various market strength signals to inform investors and analysts about current and prospective market conditions. Understanding these indicators is essential for interpreting price action and assessing the underlying health and momentum of specific digital assets or the broader cryptocurrency market. These signals guide investment decisions.