Price momentum loss indicates a decrease in the rate at which an asset’s price is moving in a particular direction. This deceleration suggests that the buying or selling pressure driving the current price trend is weakening. For an uptrend, it means buyers are becoming less aggressive, while for a downtrend, sellers are losing conviction. Loss of momentum often precedes a price consolidation, a trend reversal, or a period of increased volatility as market forces rebalance.
Context
Price momentum loss is a key technical indicator frequently discussed in crypto news and market analysis, signaling potential shifts in market dynamics. Traders use this metric to identify possible entry or exit points and adjust their strategies. Observing this loss of impetus helps investors anticipate market changes and react accordingly to emerging trends.
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