Definition ∞ Price support broken occurs when an asset’s market price falls below a previously established level where buying interest was expected to prevent further declines. This technical analysis term signifies that a significant psychological or historical price floor has been breached, often indicating a weakening of market sentiment and increased selling pressure. Once support is broken, it can frequently act as a new resistance level, making future upward movements more challenging. This event often triggers further downside momentum as stop-loss orders are activated.
Context ∞ News reports frequently highlight instances of price support being broken as a key technical signal for traders and investors. It suggests that the market’s perception of an asset’s value has shifted downwards, potentially leading to a re-evaluation of its fair price. This event is a critical indicator of a deteriorating market structure and can precede an acceleration of a bearish trend.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
