Price Momentum

Definition ∞ ‘Price Momentum’ refers to the tendency of an asset’s price to continue moving in its current direction. Assets exhibiting strong upward momentum are expected to continue rising, while those with downward momentum are anticipated to continue falling. This concept is a key indicator in technical analysis, used by traders to identify potential entry and exit points. It is derived from analyzing historical price data and trading volumes.
Context ∞ Discussions regarding ‘Price Momentum’ in cryptocurrency markets often focus on identifying assets that have shown sustained upward or downward trends. Analysts are evaluating whether recent price action indicates a continuation of existing trends or a potential reversal, considering factors such as trading volume, market sentiment, and broader economic conditions. The effectiveness of momentum-based trading strategies is a frequent topic of debate within the trading community.