Definition ∞ A price floor established signifies a specific minimum price level below which an asset’s market value is unlikely to fall, at least in the short to medium term. This floor is often formed by robust buying interest, substantial market liquidity, or fundamental value assessments that deter further downward price movement. It represents a level where demand consistently absorbs selling pressure. Such a floor can provide a stable foundation for future price appreciation.
Context ∞ In cryptocurrency markets, a price floor established is a widely discussed concept following periods of significant price decline or prolonged consolidation. News reports often analyze on-chain metrics and technical indicators to identify when a robust price floor has been formed for a digital asset. This signals to investors that the asset may have found a stable bottom, potentially attracting new capital and reducing the risk of further substantial losses.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
