Price Breakout Catalyst

Definition ∞ A price breakout catalyst is an event or development that triggers a cryptocurrency’s price to move decisively beyond a previously established resistance or support level. These catalysts can be fundamental, such as a major network upgrade or regulatory approval, or technical, like a significant increase in trading volume. They often lead to rapid and sustained price movements, indicating a shift in market sentiment or underlying value.
Context ∞ News outlets frequently report on potential price breakout catalysts, as these events can lead to substantial gains or losses for investors. Examples include announcements of institutional adoption, new product launches, or favorable legal rulings for a specific digital asset. Market participants closely monitor these developments, using them to anticipate and capitalize on significant shifts in price momentum.