Price Recovery

Definition ∞ Price recovery refers to the process by which an asset’s value rebounds after experiencing a decline. This signifies a reversal of a downward trend, indicating renewed buying interest and a potential return to previous price levels or new highs. The strength and sustainability of a price recovery are often assessed by analyzing trading volume, technical indicators, and underlying market sentiment. It represents a shift from bearish to more neutral or bullish market conditions.
Context ∞ The current market sentiment is closely observing instances of price recovery across various digital assets, particularly after periods of significant downward pressure. Analysts are evaluating the catalysts for these recoveries, such as positive news events, shifts in macroeconomic conditions, or technical support levels being tested and holding. The durability of these recoveries is a key factor in determining future market direction and investor confidence.