Definition ∞ A price rebound signal is an indicator, often derived from technical analysis, suggesting that a digital asset’s price decline is likely to reverse, leading to an upward movement. These signals can manifest through various chart patterns, trading volume shifts, or specific oscillator readings. Investors use these indicators to identify potential buying opportunities following a market correction. Recognizing these signals requires careful observation of market dynamics.
Context ∞ Crypto news and market analysis frequently discuss various price rebound signals as traders seek to predict market reversals. Reports might highlight a specific cryptocurrency forming a “double bottom” pattern or experiencing a surge in buying volume at a critical support level. While not guarantees, these signals provide valuable context for understanding market sentiment and potential short-term price trajectories.
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