Definition ∞ Price floor testing is a market phenomenon where the price of a digital asset repeatedly approaches and bounces off a specific lower price level, indicating strong buying interest at that point. This action verifies the strength of a support level, as buyers consistently step in to prevent further declines. It confirms a reliable demand zone.
Context ∞ Crypto news often highlights instances of price floor testing to illustrate market resilience or to confirm the significance of key support levels. These analyses provide valuable insights for traders and investors looking to identify stable entry points or assess the robustness of an asset’s valuation.
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