PnV Enhancement

Definition ∞ PnV Enhancement, or Price and Volume Enhancement, refers to a market condition where both the price of an asset and its trading volume increase simultaneously. This co-occurrence suggests strong market conviction and genuine interest from participants. An increase in volume alongside price validates the upward movement, indicating broad participation rather than manipulation. It is often considered a reliable signal of a healthy trend.
Context ∞ Crypto news frequently highlights PnV Enhancement as a bullish indicator, signifying robust market activity and potential for continued price appreciation. Analysts monitor these metrics to confirm the validity of price movements and assess market strength. Observing PnV Enhancement provides crucial context for understanding the momentum behind a digital asset’s performance. This phenomenon is a key consideration for traders evaluating market trends.