Pre Rally Signal

Definition ∞ A pre rally signal is a market indicator suggesting that a significant upward price movement, or rally, is likely to occur soon. These signals often emerge from technical analysis patterns, on-chain data, or sentiment indicators that historically precede periods of strong price appreciation. Examples include decreasing selling pressure, increasing accumulation by long-term holders, or a break above key resistance levels after a period of consolidation. Recognizing these signs helps investors position themselves for potential gains.
Context ∞ Market analysts frequently highlight pre rally signals in their reports, providing context for anticipated bullish movements in cryptocurrency prices. News articles may discuss these indicators to explain why certain digital assets are poised for growth. Identifying these signals is important for traders seeking to capitalize on upward market trends.