Definition ∞ Net selling describes the aggregate outcome of selling activities within a market or for a specific asset, where the total volume of assets sold exceeds the total volume purchased over a given period. This metric indicates a bearish sentiment or downward pressure on an asset’s price, as more participants are choosing to divest than acquire. Analyzing net selling patterns is a key practice for traders and analysts seeking to understand market dynamics and predict potential price movements in digital assets. It signifies an imbalance favoring supply over demand.
Context ∞ Reports on net selling often accompany market downturns or periods of significant price correction for digital assets. Analysts closely monitor net selling trends across exchanges and within specific token ecosystems to gauge investor sentiment and identify potential capitulation points. Discussions frequently revolve around the factors driving net selling, such as macroeconomic conditions, regulatory uncertainty, or project-specific developments, providing context for market volatility and investor behavior.
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