Definition ∞ Price Defense refers to actions taken to prevent a significant decline in the market price of an asset. This can involve interventions by market makers, central banks, or large holders to support a specific price level through buying pressure or other market mechanisms. In the context of digital assets, price defense might involve large buy orders from influential entities or the implementation of specific protocol mechanisms designed to stabilize value. Such actions aim to restore confidence and prevent further depreciation.
Context ∞ The concept of price defense is frequently discussed in relation to major cryptocurrencies or specific stablecoins experiencing downward price pressure. Debates often center on the sustainability and effectiveness of such interventions, as well as their potential to distort natural market forces. The announcement or observation of price defense activities can significantly influence trader sentiment and short-term market movements.
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