Price Acceleration

Definition ∞ Price acceleration denotes a rapid increase in the rate at which an asset’s market value rises. This market phenomenon occurs when buying pressure intensifies significantly, causing the price to climb at an increasingly faster pace. It often accompanies periods of heightened market excitement, positive news, or a sudden influx of capital. Such rapid price movements can be unsustainable in the long term, often preceding periods of consolidation or correction.
Context ∞ News outlets frequently report on price acceleration during bull markets or after major announcements, often sparking further investor interest. Understanding the factors contributing to this rapid ascent helps distinguish between speculative bubbles and fundamentally driven growth. This concept is central to technical analysis and understanding market momentum.