Definition ∞ An Oversold Market Signal indicates that an asset’s price has fallen excessively and may be due for a rebound. This technical indicator suggests that selling pressure might be nearing exhaustion, leading to a potential price reversal. It is often identified using oscillators that measure price momentum. Traders use this signal to identify potential buying opportunities.
Context ∞ In cryptocurrency markets, analysts closely monitor oversold market signals to identify potential turning points after significant price declines. The discussion often involves validating these signals with other technical indicators and fundamental analysis to confirm a likely rebound. Identifying such signals can inform strategic entry points for investors.
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