Definition ∞ A price appreciation signal indicates conditions that suggest an asset’s value is likely to increase over a given period. This refers to various market or on-chain metrics that, when observed, correlate with subsequent upward price trajectories for a cryptocurrency. Such signals can include strong accumulation by large entities, decreasing supply on exchanges, positive fundamental developments, or favorable macroeconomic conditions. These indicators collectively suggest a growing demand or diminishing supply that could drive prices higher.
Context ∞ News and market analyses often cite price appreciation signals to explain positive market sentiment or to forecast future price movements for digital assets. Investors use these signals to validate their long-term holdings or to identify entry points for new positions. Understanding these indicators provides valuable insight into potential market performance.